of 
(California 


lur  er  a,entbvtB_| 


The 

Gospel  of  Greed 

SPIRIT  OF  COMMERCIALISM 

THE  VITAL  CONTROLLING  FORCE 

IN  HUMAN  AFFAIRS 


Results  in  Progress  for  Humanity 
Individualism  vs.  Socialism 


X^W" 

UNIVERSITY 


By  CHARLES  H.  MCDERMOTT 

~ 


1903 

THE  CHAPPLE  PUBLISHING  COMPANY,  LTD. 
Boston,  Mass. 


Copyright,  1908,  by 

CHARLES  H.  MCDERMOTT 

Boston,  Mass. 


INTRODUCTION 


Air  castles  are  charming  and  a  fool's  paradise  is 
pleasurable  for  those  who  like  to  indulge  the  imagina- 
tion. But  ordinary  human  beings  must  face  the  cold 
stern  realities  of  life  as  it  is  lived,  and  make  the  best 
of  the  conditions  as  they  are.  Flights  of  fancy  are 
entertaining  while  facts  are  too  often  dull  and  dis- 
agreeable. And  yet  facts  and  truth  must  stand.  They 
cannot  be  evaded  or  ignored.  Results  must  follow 
from  causes  with  the  certainty  of  fate,  and  error  is 
error  no  matter  how  attractive  it  may  be  made  to 
appear. 

In  the  views  herewith  presented  no  effort  is  made 
to  please  or  favor  any  individual  or  classes,  but  simply 
to  give  the  facts  as  known  to  all,  and  to  reason  in  a 
plain,  common-sense  way  that  all  can  understand  as 
to  what  has  been  done,  what  can  be  done,  and  what  is 
likely  to  be  done  with  changed  and  changing  conditions. 

There  are  limitations  as  well  as  possibilities  for 
human  beings.  The  idealists  and  the  imaginative  ones 
serve  a  useful  purpose  in  the  natural  order  or  they 
would  not  exist.  Sometimes  they  get  hold  of  frag- 
mentary truths  that  may  lead  to  wider  knowledge  for 
practical  uses.  But  common  sense  is  the  ruling  force 
that  must  decide  as  to  the  results,  though  it  may  be 
puzzled  a  little  by  the  peculiar  reasoning  methods 
with  which  some  of  the  ideas  are  presented. 

It  may  be  assumed  that  the  common  sense  of 
humanity  wants  the  best  conditions  of  existence  for 

iii 

190890 


iv  THE  GOSPEL  OF  GREED 

all,  and  as  a  basis  for  reasoning  or  deciding  as  to  general 
policies  to  be  adopted  it  will  prefer  the  known  to  the 
unknowable  or  facts  rather  than  theories.  We  cannot 
all  be  poets  or  philosophers,  great  artists  or  musicians, 
literary  geniuses  or  learned  professors,  any  more  than 
we  can  all  be  merchant  princes,  captains  of  industry 
or  domineering  plutocrats.  All  have  been  developed 
in  their  own  way  as  part  of  the  whole,  and  must  be 
considered  as  fulfilling  their  missions  in  the  sense  that 
there  is  a  reason  for  their  existence.  So  why  try  to 
unduly  exalt  or  seek  to  destroy  any?  Then  who 
could  be  wise  enough  to  decide  with  fairness  as  to 
which  should  be  sacrificed? 

But  all  in  the  varying  conditions  must  live,  and 
all  want  their  share  of  the  good  things  of  life  that  are 
embraced  in  the  term  of  wealth  production.  Why, 
then,  should  not  a  little  attention  be  given  to  the  facts 
of  this  wealth  production  and  the  work  of  the  real 
producers  of  wealth  who  supply  all  the  benefits  that 
the  others  enjoy? 

Nothing  is  presented  herewith  in  the  way  of  a 
New  Dispensation  for  overturning  the  existing  order 
or  for  bringing  about  idyllic  conditions.  Some  of  us 
who  are  older  than  we  used  to  be  have  memories  of 
grand  ideas  of  reforms  that  we  advocated  with  youth- 
ful enthusiasm,  but  which  experience  proved  to  be 
sadly  disappointing  if  not  utterly  foolish.  With  such 
memories,  possibly  we  should  be  more  tolerant  for 
other  enthusiasts,  but  knowing  the  results,  something 
must  be  excused  for  sarcastic  expressions  concerning 
the  ideas  or  blunders  of  the  younger  ones  who  may 
mean  well  but  don't  know. 


INTRODUCTION 


Experience  can  realize  the  evils  that  must  follow 
from  unwise  measures,  no  matter  how  honestly  they 
may  be  advocated  as  reforms,  and  it  is  better  for  all 
concerned  to  point  out  the  mistakes  in  a  positive  way 
and  even  with  the  forcible  expressions  of  the  style 
that  the  agitators  make  such  free  use  in  their  attacks 
and  condemnations. 

While  nothing  like  a  full  discussion  can  be  attempted 
in  this  connection,  yet  the  brief  outline  presented  will 
serve  as  a  basis  for  reasoning  any  further  details  needed 
to  convince  common  sense  as  to  the  overwhelming 
importance  of  this  feature  of  wealth  production  and 
the  means  by  which  it  is  and  must  be  accomplished. 


To  the  honor  and  glory  of  the  Spirit  of  Commercial- 
ism, with  its  impelling  force  of  greed  for  gain,  which, 
with  all  its  faults,  has  given  everything  known  in  human 
progress  from  the  lowest  savagery  to  the  highest  ethical 
culture,  and  to  the  confusion  of  the  envious  passions  or 
the  conceited  ignorance  that  would  ruthlessly  destroy  it 
all,  these  pages  are  dedicated. 


CONTENTS 


CHAPTER   I. 
THE  DESIRE  FOR  CHANGE 

No  one  entirely  satisfied — Always  defects  and  evils — 
The  moral  law  and  the  natural  law — Results  must 
follow  from  causes — Opposing  forces  and  conditions — 
Cannot  have  opposites  at  the  same  ^time— Political 
economy  and  its  defects — The  human  element  un- 
certain— Mistakes  of  the  authorities  in  aiming  at 
fixed  rules — Only  broad,  general  principles  can  be 
formulated — Conditions  to  be  considered  ...  1 

CHAPTER   II. 
GREED  FOR  GAIN 

The  paradox  of  navigation  and  greed — Evils  and  misery 
from  greed — The  dominating  human  passion  always 
acting — Sordid  greed  and  enlightened  self-interest — 
The  religious  idea  of  condemnation  for  greed — Why 
honesty  is  the  best  policy  from  the  business-point  of 
view — Why  the  term  greed  is  used  in  the  larger 
meaning — The  problem  of  government  in  dealing  with 
greed 7 

CHAPTER   III. 
FORMS  OF  GOVERNMENT 

What  is  meant  by  government — The  experience  of 
humanity  with  all  forms — Science  cannot  decide — 
Different  results  with  same  forms  in  America  and 
France — The  human  element — Pope's  conclusion — 
Advantages  with  the  right  kind  of  a  despot — Why 
despotism  is  a  failure — The  struggle  against  despot- 
ism— The  industrial  results  from  freedom  for  indi- 
vidual action — The  call  of  the  clouds  and  the  light- 

(vii) 


viii  THE  GOSPEL  OF  GREED 


ning  unheeded — What  the  younger  generation  does 
not  realize — Inventions  and  improvements  have 
changed  the  face  of  the  earth — Criticism  and  con- 
demnation and  changes  demanded  .  .  .  .11 


CHAPTER  IV. 
THEORIES  AND  PROMISES  OF  SOCIALISM 

Attractive  ideas  as  presented  with  charming  promises — 
Questions  about  the  wonderful  government — Abso- 
lute power  for  the  rulers  with  the  extreme  of  coercion 
— Some  supreme  authority  must  decide  and  enforce 
obedience — What  human  being  would  be  named? — 
The  reforms  promised — Free  wage-slaves  and  abolish 
capitalists — Result  of  more  despotic  control — Always 
the  idea  of  forcing  others  to  submit — The  alleged  evils 
and  changes  for  improvements  .  .  .  .  .19 

CHAPTER    V. 
PROGRESS  OF  CIVILIZATION 

The  changes  from  primitive  savagery — All  stages  found 
on  earth  at  present  with  the  remarkable  differences — 
The  natural  inequalities  as  created — Civilization  not 
a  form  of  evolution — Rise,  progress  and  decay  of  na- 
tions— The  mystery  of  civilization — All  progress  the 
work  of  individuals — The  first  ideas  and  bright  minds 
constantly  adding — Co-operation  with  leaders  is  neces- 
sary— From  tribe  to  world-conquering  nation — 
Alexander  and  Caesar  win,  but  people  cannot  hold 
control — The  same  principles  for  industry — The  growth 
of  an  industry — Individuals  in  control  and  how  they 
are  influenced — Chances  for  profit  affect  the  aggre- 
gate results — The  puzzle  for  scientists  .  .  .29 

CHAPTER    VI. 
CREATION  OF  WEALTH 

The  basis  of  all  human  progress — Changing  or  transform- 
ing materials  for  man's  use — Different  meanings  of 
the  term  labor — The  socialistic  claims — The  Karl 
Marx  theory  of  equality  for  labor  and  robbery  of 


CONTENTS  ix 


capital — The  creative  action  of  brain  power — Value 
of  the  canoe  and  bow  and  arrow  for  the  savage — Dif- 
ference in  the  results  of  physical  labor — An  adaptation 
of  the  Karl  Marx  ideas — How  a  factory  might  grow 
and  the  workers  be  robbed — Something  about  the 
claims  for  control  by  labor  unions — Vulcanization  of 
rubber  other  inventions  and  utilization  of  wastes  .  37 


CHAPTER  VII. 
LABOR  AND  ITS  VALUE 

Value  in  use — Worthless  and  a  burden  when  unemployed 
— The  misery  of  hard  times — May  be  destructive — 
Difference  in  value  of  product — Cost  of  supervising — 
What  has  labor  accomplished? — Value  of  intelligent 
labor — Claims  for  superiority  of  labor — Eastern  and 
western  wages — Mr.  Carnegie's  illustration — The  three 
legs  of  the  stool,  but  one  is  vital — Carnegie's  success 
with  Bessemer  Steel  process — What  was  done  with 
the  same  in  England — Power  in  the  train  of  cars — 
Delusion  of  fixed  demand  for  labor*— Cost  of  building 
— Gains  and  losses  .......  47 

CHAPTER    VII L 
HOW  PRODUCTION  IS  INCREASED 

Intelligence  the  creative  power — Example  of  the  shoe- 
makers— Who  creates  the  extra  value  and  who  should 
have  it — Results  go  to  the  public  and  labor — Profits 
in  evidence,  but  not  the  products — Inventions  must 
be  developed — Comparison  of  trust  profits  and  indi- 
vidual gams — The  chances  for  young  men  and  their 
profits — Few  concerns  with  big  fortunes — How  profits 
vary  in  progressive  industries — The  successes  and 
failures — The  cloth  weaver  and  the  wages — Scant  re- 
wards for  benefits  given 61 

CHAPTER   IX. 
SOME  REFORM  IDEAS 

Present  conditions  and  the  criticisms  oi  the  reformers — 
How  conditions  have  developed — Moralists  and  com- 
mercialism— Why  education  is  possible — Non-produc- 


THE  GOSPEL  OF  GREED 


ing  professional  classes  as  parasites  and  the  assumed 
superiority— The  college  boy  and  his  father — Philan- 
thropic objectors  and  what  they  want — Other  fault- 
finders opposed  to  profits — Curious  ideas  about  profits 
— The  important  question  of  selling — The  socialistic 
claims — The  notion  of  a  fixed  amount  of  wealth  to  be 
divided — The  logical  conclusion  low  wages  with  pros- 
perity and  high  wages  with  panics  .  .  .  .71 

CHAPTER    X. 
INDUSTRIAL  RESULTS  FROM  SOCIALISM 

Influence  tor  wealth  production — Some  remarkable 
theories  considered — The  employer  as  a  robber — 
Equality  for  all  not  possible — The  work  of  machinery 
and  the  idea  of  government  machines  free  for  the 
workers — Who  would  furnish  the  machines? — Re- 
warding the  inventors,  but  who  could  decide — How 
luxuries  could  be  abolished — The  amateur  socialists — 
Respect  for  honest  fanatics,  but  contempt  for  trim- 
mers who  know  better — The  idea  of  public  ownership 
— How  it  would  work  with  the  street-car  systems — 
The  practical  question  of  results  .  .  .  .79 

CHAPTER    XL 
ECONOMIC   STONE   WALL   FOR   SOCIALISM 

The  rule  and  the  exceptions — The  promises  of  socialism 
and  the  enormous  wealth  needed- — How  will  this  in- 
creased volume  of  wealth  be  produced? — The  capital 
needed — Must  be  more  work  or  less  wages — Juggling 
with  the  census  figures — What  the  capitalistic  robbers 
actually  get.  Trouble  about  getting  the  supplies  in 
advance — A  fiat  wealth  suggestion  with  grand  pos- 
sibilities— The  vagaries  of  one  socialistic  authority — 
Promise  of  eight  times  present  wages — Jack  Cade  out- 
done .  ...  .91 

CHAPTER    XII. 
PROFESSIONAL  AND  AMATEUR  SOCIALISM 

The  knowledge  of  other  people's  business — How  to  be 
a  reformer  of  the  socialistic  brand — The  results  that 


CONTENTS 


may  come  — Working  squads  detailed  for  taking  turns 
at  high  thinking  and  sewer  cleaning — The  control  of 
printing  and  publishing — Phantom  jobs  and  fiat  pay- 
ments— The  captalistic  robbers  who  neglect  oppor- 
tunities to  rob  the  unemployed — Honest  believers  in 
socialism — Easily  become  religiously  fanatical — How 
murder  and  riots  are  incited — Limiting  big  fortunes 
and  what  it  would  mean — Working  for  results — Gen- 
eral Grant  as  a  military  monopolist  ....  103 


CHAPTER    XIII. 
THE  DESTRUCTIVE  SPIRIT  OF  SOCIALISM 

The  question  of  wealth  distribution — Some  comparisons 
— How  conditions  have  changed — The  modern  beggar 
and  domestic  service — Wages  and  interest  rates — 
Labor  unions  and  legislation — More  wealth  must  be 
created  before  more  can  be  distributed — Labor  con- 
tributes nothing — Proposed  elimination  of  the  cap- 
italistic robbers  and  humbug  about  dividing  their 
share — Pretended  philanthrophy  and  the  real  spirit 
of  destructive  envy — How  greed  and  jealous  envy 
compare  .  .  .  .  .  .  .  .  113 

CHAPTER    XIV. 
SYSTEM  OF  THE  NATURAL  ORDER 

Differences  and  infinite  variety  of  nature — Fault-finders 
who  would  have  changes  with  uniformity — Motives 
of  envy  or  jealousy — Robbery  as  a  remedy  for  greed 
— Condemning  the  victors — The  example  of  the  great 
steamship — Comparison  with  the  log  raft — The  savage 
and  the  captain — The  crew  and  the  sympathetic  pas- 
sengers— Mutiny  and  shipwreck — What  can  the  crews 
or  industrial  workers  gain  from  the  change  ?  .  .  120 

CHAPTER    XV. 
GOVERNMENTAL  POLICIES 

Promoting  the  welfare  of  the  people — Employment  for 
wealth  production — The  despotic  idea  of  repression — 
The  dawn  of  commercial  freedom — Conditions  in 


xii  THE  GOSPEL  OF  GREED 


England  and  the  colonies — Protection  for  wealth 
produced,  and  freedom  to  work  out  ideas — Equal 
opportunities,  but  not  equal  results — Fortunes  or 
the  inequalities  are  the  stimulus  for  all  improvements 
— The  power  for  destruction — Causes  for  depression 
and  panics — The  leaders  and  followers — Evil  from 
fanatical  reformers — Crushing  effect  on  workers — 
Conclusions  ........  125 


CHAPTER    XVI. 
THE  TARIFF  QUESTION 

How  wealth  production  can  be  promoted — Freedom  of 
opportunity  for  all  with  tariff  duties — Profits  and  com- 
petition— Duty  must  be  high  enough — Economic 
theory  of  tariff — The  free  trade  argument — Producers 
or  consumers — Examples  of  Canada  and  Germany — 
Tariff  revision  and  effects — supply  and  demand  in 
markets  fix  prices — The  question  of  profits  and  value 
of  production — The  robber  barons  and  their  work — 
Why  the  failures  .  .  .  .  .  .  .135 


CHAPTER    XVII. 
THE  RAILROAD  PROBLEM 

Some  questions  presented — Origin  and  development  of 
railroads — Private  enterprise  for  profit — Progress  in 
face  of  ridicule — Stupendous  results  from  railroad 
service — A  comparison  in  benefits  with  the  work  of 
philanthropy — The  general  denunciation  and  war 

..  on  railroads — Some  explanations — The  continuous 
work  of  development — Results  far  exceeding  any  other 
branch  of  human  industry — The  attacks  on  railroads — 
Confiscation  threatened  and  inability  to  get  capital 
for  improvements — Railroads  not  public  highways — 
Splenaid  results  not  considered  by  the  reformers — 
The  greedy  magnates  and  their  powers — The  results 
with  government  control — How  better  service  for  the 
public  must  come — What  some  of  the  magnates  are 
doing — A  business  proposition  of  results  and  profits — 
The  real  problem  to  be  decided  .  .  .  .  .  147 


CONTENTS  xiii 


CHAPTER    XVIII. 
TRUSTS  AND  CORPORATIONS 

The  economic  principles — Too  much  assumed — The  real 
question  of  competition — The  best  must  win — Large 
capital  useless  without  the  proper  control — Failure  of 
many  trusts — Department  stores  and  miles  of  deserted 
business  streets  as  predicted — The  opposing  forces 
must  work  it  out  and  competition  is  always  acting — 
Socialistic  admissions  of  benefits  from  comoinations — 
The  increased  wealth  production — Value  of  some  prod- 
ucts consumed  by  the  mass  of  the  people — Where  is 
the  pauperism — Misleading  promises  of  socialism — 
Corporations  subject  to  same  laws  as  individuals  and 
should  be  punished  the  same — Big  profits  prove  bene- 
fits— Changes  needed  in  corporation  laws  for  protec- 
tion of  minority  stockholders — Bad  results  from  the 
Sherman  Anti-trust  law — Trust  plans  favored  in 
Europe — Blundering  in  law-making  for  business  man- 
agement   163 

CHAPTER    XIX. 
LANDLORDISM  AND  TAXATION 

The  gigantic  robber  of  all  and  the  single-tax  remedy  as 
proposed — The  fallacy  in  the  term ' '  free  access  to  land ' ' 
— Security  of  possession  and  value  of  land  fixed  by 
competition — The  use  of  land  and  service  wanted — 
Conditions  affecting  values — Why  some  cities  grow — 
The  contradiction  involved  in  the  single-tax  remedy 
— Must  be  full  government  ownership — Cost  of  hold- 
ing land — Rent  and  interest  the  same — Land  not  in 
use  and  why — Less  development  with  government 
ownership  and  less  demand  for  labor — Land  not  a 
separate  factor  for  production,  and  must  be  included 
as  a  form  of  capital — A  sample  single-tax  argument 
and  some  of  the  absurdities — Labor  humbugged  by 
promises — Some  reforms  needed  in  laws  for  trans- 
ferring land-titles  to  encourage  development — The 
old  story  for  labor — Will  it  ever  learn  .  .  .175 

CHAPTER  XX. 
BANKS  AND  BANKING 

Commercialism  works  for  the  best  results — Banking  an 
important  industry  and  bankers  must  know  more 


xiv  THE  GOSPEL  OF  GREED 


about  it  than  the  critics — The  same  desire  for  profit 
and  increased  business  from  service  for  the  public — 
Improvements  in  banking  methods — Important  factor 
for  wealth  production — High  standards  maintained — 
The  alleged  power  for  oppression — Laws  to  protect 
depositors  and  regulate  currency  issues — Centraliza- 
tion and  uniformity  of  note-issues  desirable — Public 
confidence  in  banks  and  why  they  are  attacked — 
The  demand  for  destruction — The  inheritance  taxes 
and  why  they  must  tend  to  limit  the  work  of  wealth 
production — A  chance  for  reformers  to  test  their 
theories  and  show  results — Other  fields  of  activity 
suggested  for  the  higher-life  aspirations  .  .  189 


CHAPTER    XXL 
THE  GREED  OF  COMMERCIALISM 

Glorifying  greed  and  the  baser  passions  as  against  the 
higher-life  aspirations — Regulating  or  suppressing 
human  appetite  and  evils  of  gluttony — The  work  of 
the  moralist  teachers — Attempting  too  much — Profits 
or  honors  for  the  leaders  who  bring  the  results — How 
the  missionary  and  the  trader  go  forth  to  the  heathen, 
but  the  trader  is  first — Commercialism  the  civilizer — 
All  higher  life,  educational  or  religious,  must  be  sup- 
ported by  commercialism — The  novelists  view  of  the 
millionaires — Tolerance  of  commercialism  as  opposed 
to  religious  bigotry — What  education  includes  and 
its  ideals — Work  of  military  heroes  as  compared  with 
the  results  from  commercial  leaders — Men  who  are  real 
leaders — Commercialism  must  be  recognized  and  hon- 
ored— Commercialism  and  religion  work  together  for 
benefit  to  humanity — The  real  obstacles  to  progress  .  195 

CHAPTER    XXI L 
REFORMS  IN  GOVERNMENT 

Intelligence  must  control — Value  of  education — Alarm 
of  weak  minds  at  progress  of  commercialism — Dispo- 
sition to  use  despotic  measures  for  suppressing  the 
traders — Corrupting  officials  who  lack  moral  powers 
of  resistance — A  question  of  franchises  for  public 
service — Official  corruption  not  a  new  development — 
The  grand  results  from  commercialism  and  ability  of 


CONTENTS  xv 


the  leaders  for  public  official  positions — How  bribery 
could  be  suppressed — The  socialistic  alternative — 
Ability  needed  for  gaining  wealth  and  rich  men  con- 
sulted for  advice — Now  the  claim  that  this  is  all  wrong 
and  that  commercialism  is  threatening — Changes  in 
America  and  England — More  power  for  official  con- 
trol— Wealthy  corporations  condemned  in  advance 
without  hearing — Reverting  to  despotism  by  Divine 
right — Wrecking  instead  of  promoting  movements 
for  the  general  welfare — A  practical  question  for  the 
wealth  producers  to  consider — A  suggestion  for  the 
higher-life  theorists 205 


CHAPTER    XXIII. 
AN  ADDENDUM 

The  arch  enemy  and  destroyer  of  the  liberties  of  the 
people — Conquering  heroes  who  destroy  and  com- 
mercial heroes  who  build  up  and  create  wealth — 
Achievements  of  the  Rockefeller  leadership  and  the 
victims — The  verdict  of  future  historians — Conditions 
compared  with  other  countries — Why  the  immigra- 
tion— The  changes  of  a  year — Literary  soldiers  of 
fortune  and  their  work — Politicians  and  others  who 
are  uniting  for  the  destruction  of  commercialism — 
Comedy  or  tragedy — What  change  do  you  want?  .  217 


THE  DESIRE  FOR  CHANGE. 

Reforms  and  Reformers — How  They  Must  be  Considered  for 
Practical  Results — Elementary  Principles  That  Must 
Govern. 

If  the  question  is  asked:  "Are  you  entirely  satis- 
fied with  present  conditions  ? "  few  human  beings 
would  answer  "  Yes." 

No  matter  what  walk  or  condition  of  life,  there  is 
always  something  lacking  and  some  desires  are  not 
gratified. 

But  if  there  is  such  general  dissatisfaction,  is  it 
not  evidence  that  the  existing  systems  in  business, 
industry  and  the  social  order  are  all  wrong,  and  that 
there  is  a  pressing  need  for  radical  changes  that  lead 
to  something  better? 

If  the  question  "Do  you  want  a  change?"  was 
submitted  to  the  people,  there  would  be  an  over- 
whelming "Yes"  vote.  The  next  question  would  be: 
"What  change  do  you  want?"  and  then  would  come 
the  array  of  all  the  conflicting  interests,  each  seeking 
some  change  for  its  own  advantage,  and  there  would 
be  a  chaos  of  counselling. 

There  are  always  so  many  defects  and  positive 
evils  to  be  pointed  out  that  the  man  who  proposes 
a  policy  of  reform  is  sure  of  an  enthusiastic  following. 
But  older  men,  as  well  as  some  who  are  still  con- 
sidered youthful,  know  from  experience  that  there 
must  always  be  a  wide  difference  between  the  reforms 


THE  GOSPEL  OF  GREED 


as  promised  and  the  practical  results  accomplished. 
So  when  honest  enthusiasts  or  men  with  sordid 
motives  promise  the  grand  results,  it  is  only  ordinary 
prudence  to  ask  for  details  or  explanations  to  show 
how  the  proposed  plans  will  work  out  in  a  practical 
way. 

Here  it  may  be  well  to  note  the  wide  difference 
between  what  is  known  as  the  moral  law  and  the 
natural  laws  having  to  do  with  the  action  of  the 
natural  forces.  For  example,  water  will  drown  and 
fire  will  burn.  Positive  results  will  follow  from  the 
action  of  chemical  elements,  and  gravitation  is  always 
acting.  These  forces  will  work  destruction  if  not 
controlled. 

The  moral  law  regards  the  motives  or  intention 
of  the  individual  action.  When  a  man  takes  the  life 
of  another,  he  is  judged  according  to  the  intention. 
The  killer  is  not  held  guilty  in  case  of  an  accident, 
but  the  killed  is  as  surely  dead  as  if  the  killer  had 
deliberately  planned  it.  Death  is  the  result,  and  the 
act  of  the  killer  is  the  cause  from  which  it  follows. 

In  economics  and  in  human  affairs  generally  there 
are  certain  well-defined  principles  or  policies  which  in 
action  will  bring  about  positive  results  as  surely  as 
death  follows  the  action  of  the  killer.  It  is  not  enough, 
therefore,  to  know  that  the  individual  proposing  or 
advocating  a  particular  policy  is  honest,  high-minded 
and  philanthropic,  or  quite  the  opposite,  in  order  to 
decide  for  or  against  the  proposed  measure.  The  re- 
sults will  be  exactly  the  same.  There  will  be  the  bene- 
fit or  the  injury  no  matter  what  was  the  intention. 

History  is  full  of  examples  of  the  disastrous  results 


THE  DESIRE  FOR  CHANGE 


from  actions  of  weak-minded,  though  thoroughly  honest 
and  consciencious  men  in  authority,  while  on  the  con- 
trary, excellent  results  have  often  come  from  policies 
dictated  by  sordid,  selfish  or  even  criminal  motives. 
There  is  the  wisdom  of  experience  in  the  old  party 
slogan  of  "Measures,  not  men."  The  measures  bring 
the  results.  There  may  be  cases  where  the  character 
of  the  men  must  be  considered,  but  when  it  is  clearly 
a  question  of  deciding  between  different  or  opposing 
measures,  the  personality  of  the  individuals  to  be 
chosen  as  agents  is  of  less  account.  The  measures 
themselves  must  be  judged  by  the  best  light  that  can 
be  obtained  from  the  lamp  of  experience.  Present 
evils  may  be  objectionable,  but  proposed  measures  for 
remedy  may  bring  far  worse  conditions. 

Another  point  to  be  remembered  in  discussing  pro- 
posed measures  or  changes  is  that  in  all  social  move- 
ments, as  in  the  physical  world,  there  are  found  op- 
posing forces  or  conditions  and  a  result  in  one  direction 
can  be  gained  only  by  sacrificing  something  of  the 
opposite.  The  trotting-horse  cannot  pull  a  load,  and 
the  draught-horse  cannot  be  a  fast  tro.tter.  A  trotting- 
buggy  cannot  carry  a  load  of  steel  rails  and  an  ice 
wagon  is  not  suitable  for  speeding  on  a  race-track. 
For  strength  and  solidity  there  must  be  a  sacrifice  of 
lightness  and  grace.  The  fast-sailing  yacht  is  not  a 
good  cargo-carrier,  and  so  on  without  end.  We  can 
develop  in  either  direction,  but  cannot  have  the  op- 
posite characteristics  combined  in  one  form.  All  this 
is  self-evident  and  commonplace  enough,  but  the 
principle  is  usually  ignored  by  the  enthusiastic  advo- 
cates of  measures  or  policies,  who  point  to  the  promised 


THE  GOSPEL  OF  GREED 


results  in  one  direction  without  considering  the  changes 
that  must  be  involved  in  the  other.  Restrictive  laws 
mean  loss  of  individual  freedom,  while  lax  laws  fail  to 
give  proper  protection.  Laws  may  be  wise  and  just, 
but  at  some  point  they  will  bear  hard  on  some  individ- 
uals. Police  regulations  are  necessary  and  desirable 
for  suppressing  midnight  marauders,  but  the  belated, 
honest  citizen  often  finds  the  regulations  decidedly 
troublesome  and  unpleasant. 

Political  economy  is  not  considered  as  entertaining 
reading.  Many  feel  in  duty  bound  to  make  some 
effort  to  get  a  knowledge  of  the  principles  as  affecting 
political  questions,  but  soon  find  that  the  authorities 
differ  widely.  Volumes  and  volumes  have  been  written 
setting  forth  ideas  on  the  relation  between  causes  and 
effects  in  human  affairs  with  particular  reference  to 
business  and  industrial  development.  Any  number 
of  systems  or  alleged  principles  have  been  presented 
with  logical  reasoning  or  impassioned  invective,  but 
somehow  few  seem  to  explain  satisfactorily  the  results 
as  proved  by  experience.  Many  start  out  with  theories 
of  their  own  and  argue  to  prove  how  much  better  their 
proposed  systems  would  be,  if  adopted,  than  the  ex- 
isting order.  They  scorn  the  slow  progress  of  develop- 
ment and  want  revolutionary  changes  at  once.  Others 
indulge  in  general  fault-finding  without  definite  plans 
for  changes. 

One  reason  for  these  differences  is  that  in  human 
affairs  there  is  usually  to  be  found  a  combination  of 
causes  working  together,  and  it  is  not  easy,  if  possible, 
to  figi^e  out  as  to  which  cause  will  prove  the  more 
powerful  or  dominating  in  affecting  the  result. 


THE  DESIRE  FOR  CHANGE 


Then  the  would-be  authorities  aim  too  much  at 
fixed  rules  after  the  manner  of  the  scientific  formulas 
of  the  chemist  or  the  equations  of  the  civil  engineer 
dealing  with  mechanical  movements  and  natural  forces. 
These  can  always  be  exact  and  precise,  because  there 
are  no  variationsnin  the  relations  of  cause  and  effect. 
But  there  can  be  no  such  certainty  in  human  affairs, 
and  hence  political  economy  can  never  properly  be 
classed  as  an  exact  science. 

We  cannot  as  yet  foretell  weather  conditions  with 
certainty.  "The  wind  bloweth  whither  it  listeth,"  and 
it  may  take  the  character  of  a  zephyr  or  a  hurricane. 
But  much  has  been  learned  of  the  action  of  the  air  in 
motion,  and  the  effect  of  the  force  developed  by  differ- 
ent velocities  can  be  accurately  measured.  So,  if  we 
cannot  formulate  exact  rules  for  economic  or  social 
action,  there  can  be  certain  general  principles  evolved 
which  will  give  some  broad  rules  of  cause  and  effect, 
and  indicate  results  with  reasonable  certainty.  The 
builders  of  a  wall  or  structure  must  figure  on  the  power 
of  resistance  to  the  wind-forces  likely  to  be  exerted. 
The  proposed  measures  for  human  improvement, 
socially  or  industrially,  must  allow  for  public  sentiment 
ranging  all  the  way  from  indifference  to  strong  oppo- 
sition, and  up  to  passionate  outbursts  of  violence 
against  the  measures.  The  opposition  or  violence  may 
be  misdirected,  and  the  measure  may  be  one  that  will 
prove  of  absolute  benefit,  but  none  the  less,  it  must 
be  presented  in  such  a  way  that  it  will  withstand  the 
force  of  hostile  sentiment  which  may  oppose  it. 

Laws  and  customs  that  give  excellent  results  in 
some  localities  would  be  intolerable  in  other  places. 


THE  GOSPEL  OF  GREED 


Then  time  brings  changes,  and  laws  and  customs 
must  change  accordingly.  Alexander  Hamilton  was 
wise  in  his  day  and  generation  when  he  said: 

"The  government  that  is  good  for  one  country 
may  be  very  bad  for  another;  for  government  should 
fit  a  people  as  clothes  do  a  man.  What  is  appropriate 
in  Boston  may  be  unsuitable  in  London,  laughable  in 
Paris,  and  ridiculous  in  St.  Petersburg." 

It  may  be  concluded,  therefore,  that  any  philo- 
sophic reasonings  or  theories  on  social  matters  which 
omit  a  due  consideration  of  the  human  element  are 
more  than  likely  to  be  proved  radically  wrong  by 
experience. 


CHAPTER  II. 

GREED  FOR  GAIN. 

The  Great  Controlling  Force  in  Human  Affairs — Always 
Acting  and  Always  a  Factor  to  be  Considered — Varying 
Characteristics  and  Results — Why  the  Term  Is  Used. 

Tie  obstacle  to  navigation  is  the  resistance  of  the 
water,  and  navigation  is  made  possible  by  the  resistance 
of  the  water. 

Paddles  would  be  useless,  and  the  keel  and  rudder 
would  not  act  without  the  resistance  of  the  water 
through  which  the  vessel  is  forced. 

The  cause  for  most  of  the  evils  that  afflict  humanity 
is  human  greed,  and  the  force  that  constantly  works 
for  all  material  improvement  and  benefit  for  humanity 
is  human  greed. 

Man's  inhumanity  to  man 
Makes  countless  thousands  mourn. 

Burns. 

Who  will  attempt  to  measure  the  miseries,  sufferings 
and  destruction  from  human  greed?  How  it  brutalizes, 
and  how  all  the  nobler  sentiments  are  stifled.  How 
the  victims  are  tortured  and  crushed!  Practically  all 
the  history  of  crimes  and  criminals  in  all  ages,  from  the 
highest  to  the  lowest,  is  a  record  of  the  working  of 
greed.  No  flights  of  rhetoric  can  fitly  characterize 
the  evils  from  this  cause  or  add  to  the  common  knowl- 
edge of  the  results. 

And  yet  what  is  greed?  Simply  an  intensified 
desire  for  possession  which  is  universal  in  all  human 

(7) 


THE  GOSPEL  OF  GREED 


beings,  and  second  only  to  the  instinctive  animal 
impulse  of  self-preservation.  Greed  of  savagery  or 
childhood  is  oblivious  to  the  rights  of  others,  and 
grasps  without  question.  With  education  and  devel- 
opment, greed  is  modified  into  ordinary  selfishness,  and 
becomes  a  desire  for  better  things  or  improved  con- 
ditions. Then  follows  enlightened  self-interest  which 
recognizes  obligations  to  others,  and  through  the 
different  phases  of  liberality  to  the  other  extreme  of 
excessive  sympathy  or  misplaced  generosity  which 
pauperizes  the  recipients,  and  works  injuries  hardly 
less  than  the  exactions  of  sordid  greed. 

The  sufferings  of  humanity  from  the  evils  of  greed 
are  usually  more  in  evidence  than  the  benefits  that 
come  from  the  desire  for  better  conditions.  Sympa- 
thetic reformers  in  all  ages  have  denounced  greed  and 
made  heroic  struggles  and  sacrifices  for  the  purpose  of 
bringing  about  changes  for  the  better.  But  the  same 
old  greed  remains  and  continues  as  the  controlling 
human  factor  that  cannot  be  ignored,  and  which  is 
always  present  like  the  static  force  of  resistance  of  the 
water.  The  reformers  themselves,  to  make  real  progress 
for  their  ideas,  must  organize  and  make  it  to  the  interest 
of  some  individuals  to  carry  on  the  work  for  suitable 
compensation.  Churches  must  be  organized,  and  the 
work  be  supported,  from  the  preacher  down  to  the 
various  assistants.  Public  charities  must  be  managed 
on  a  business  basis,  with  paid  workers,  in  order  to  get 
the  desired  results.  Greed  is  used  as  an  offensive  term, 
but  the  reformers  and  preachers  do  not  hesitate  to 
denounce  the  greed  of  commercialism  and  the  money- 
getting  spirit  cf  greed,  thus  making  it  include  all  desire 


GREED  FOR  GAIN 


for  gain.  The  larger  meaning  may,  therefore,  be  used 
in  discussing  the  greater  benefits  which  come  to  man- 
kind from  the  same  spirit  of  selfish  desire  for  possession. 

In  its  proper  meaning,  of  course,  there  could  be 
nothing  but  condemnation  for  the  lower  order  of  greed. 
This  kind  of  greed  grasps  at  trifles  and  is  blind  to  the 
larger  opportunities  for  more  profits  which  would  come 
from  better  service  rendered.  In  some  instances, 
however,  this  blind  greed  has  hit  upon  devices  and 
improvements  that  have  proved  of  great  value  to  the 
community.  No  matter  how  disagreeable  or  offensive 
the  personality  of  the  individual,  his  idea  was  none 
the  less  valuable,  and  to  this  extent  he  was  a  public 
benefactor  far  beyond  the  average  reformer  with  his 
contribution  of  sympathetic  tears. 

Aside  from  the  limited  action  of  a  few  in  private 
charity,  every  man  who  works  for  the  public  good 
expects  reward  in  some  form.  Some  are  satisfied 
with  the  honors  and  the  distinction  with  the  power 
that  comes  to  leaders,  but  the  great  majority  want 
substantial  rewards  in  wealth  which  will  gratify  their 
desires.  Even  religious  teachers  are  not  averse  to 
enlarging  their  fields  of  usefulness  by  being  called  to 
larger  congregations. 

But  is  not  such  a  view  of  greed  in  direct  opposition 
to  religious  and  moral  teaching  which  holds  that  the 
love  of  money  is  the  root  of  all  evil,  and  condemns 
greed  as  soul-destroying? 

Not  necessarily,  because  the  religious  idea  is  right 
from  its  standpoint.  Money-getting  may  develop 
avarice  in  the  individual  to  such  an  extent  as  to  deaden 
his  moral  perceptions  and  stunt  intellectual  growth. 


10  THE  GOSPEL  OF  GREED 

Such  evils,  however,  are  more  common  in  small  deal- 
ings. The  man  who  aims  at  large  enterprises  and 
large  profits  quickly  learns  the  commercial  meaning 
of  the  rule  that  honesty  is  the  best  policy.  In  modern 
business-dealings  trickery  soon  brings  its  own  punish- 
ment in  the  loss  of  patronage.  The  buying  public 
soon  learns  to  discriminate,  and  will  go  where  best 
values  and  best  service  are  assured  by  the  regulations 
guaranteeing  fair  treatment  to  all. 

So  it  follows  that  while  there  is  the  wide  difference 
between  sordid  greed  and  enlightened  self-interest 
yet  the  line  cannot  be  clearly  drawn  between  the  two 
manifestations  of  the  dominating  passion  of  humanity. 
Furthermore  there  is  no  possible  way  of  distinguishing 
in  the  results  as  affecting  improvements  for  the  public 
welfare,  whether  the  action  or  policy  was  due  to  an 
excess  of  greed  or  the  extreme  of  philanthropy  on  the 
part  of  the  individual. 

Hence  the  term  greed  may  be  used  in  a  general 
sense  for  purposes  of  discussion,  although  such  elasticity 
in  the  meaning  is  not  in  accordance  with  the  strict 
rules  of  logic. 

It  follows  also  that  any  consideration  of  human 
affairs  or  human  conditions  must  take  into  account 
the  factor  of  greed  which,  while  it  may  be  modified, 
can  never  be  eliminated  from  human  beings.  It  is  the 
controlling  force  always  acting,  and  the  problem  of 
all  government  is  as  to  how  far  the  evils  can  be  sup- 
pressed without  also  interfering  with  the  larger  and 
better  results  given  to  the  public  by  the  greed  that  is 
working  for  larger  gains. 


CHAPTER  III. 

FORMS  OF  GOVERNMENT. 

Scientific  Reasoning  and  the  Experience  of  Mankind  do  not 
Agree — Uncertainty  of  the  Human  Element — Industrial 
Progress  from  Freedom  for  the  Individual. 

Political  economy  is  sometimes  defined  as  "the 
science  of  government."  But  right  at  the  outset  the 
question  comes  up  as  to  what  is  meant  by  government? 
The  experience  of  mankind  covers  all  imaginable  forms 
of  government  from  the  absolute  life-and-death  sway 
of  one  autocratic  despot  through  all  the  variations  of 
consuls,  triumvirates,  councils  of  ten,  senates,  as- 
semblies, monarchies  or  empires,  confederations,  re- 
publics, the  wild  anarchy  of  mob  rule,  and  so  on  down 
to  the  primitive  conditions  of  the  individual  freedom 
of  savagery.  The  term  government  at  any  point 
along  the  line  would  necessarily  apply  only  to  the 
conditions  there  existing.  The  science  of  government 
for  the  absolute  despot  would  mean  measures  and 
policies  that  could  not  possibly  be  considered  in  the 
case  of  the  confederations,  the  republics  or  the  primitive 
savage. 

The  science  of  government  might  be  expected  to 
determine  with  some  degree  of  scientific  accuracy,  in 
the  first  place,  as  to  which  particular  form  of  government 
was  the  best  for  mankind.  But  with  all  the  wisdom 
and  all  the  experience  of  the  centuries  and  ages  of 
human  history  nothing  has  been  settled  in  a  way  that 
is  conclusive.  There  have  been  oceans  of  argument 

(11) 


12  THE  GOSPEL  OF  GREED 

backed  up  by  examples,  but  the  human  element  upsets 
all  the  logic. 

The  American  colonies  in  1776  set  up  an  ideal  of 
popular  government  in  the  Declaration  of  Independence. 
A  few  years  later  the  Red  Revolution  in  France  under- 
took to  carry  out  the  same  ideas  and  adopted  almost 
the  same  declarations.  The  philosopher  or  scientist 
would  say  that  like  causes  must  produce  like  effects 
and  that  the  results  in  both  cases  would  be  substantially 
the  same.  But  there  was  a  difference  in  the  human 
elements,  and  history  tells  of  the  widely  different 
results.  In  one  case  there  was  the  development  of 
the  principle  of  representative  government,  with 
senate  and  executive  veto  provided  to  restrain  unwise 
action  in  accordance  with  unduly  excited  popular 
demand.  There  were  further,  constitutional  limitations 
for  legislative,  executive  and  judiciary.  The  result 
was  a  well-organized  government  which  endured  to 
maintain  its  ideals. 

The  other  case  developed  with  the  power  of  the 
General  Assembly,  and  no  restricting  limitations. 
The  result  was  mob  rule  in  its  wildest  form,  drenching 
the  nation  with  blood  until  the  anarchy  was  suppressed 
by  the  iron  hand  of  Napoleon,  who  put  an  end  to  this 
disastrous  experience  of  popular  government. 

The  human  element  in  France  swings  from  the 
absolute  monarchy  of  Louis  the  Magnificent  to  the 
Red  Revolution,  and  back  again  to  the  dictatorship 
and  Empire  of  Napoleon,  then  to  the  Citizen  King, 
again  to  the  Republic  only  to  be  followed  by  another 
Imperial  Napoleon  and  again  a  constitutional  and  well- 
established  Republic  all  in  less  than  a  hundred  years. 


FORMS  OF  GOVERNMENT  13 

Like  changes  in  either  direction  are  found  in  the  history 
of  other  countries,  though  the  movements  may  be 
more  gradual  and  covering  longer  periods. 

What  can  science  do  in  the  face  of  such  records? 
Logical  principles  with  clearly  defined  rules  of  cause 
and  effect  are  all  overturned  and  set  at  naught.  In 
the  evolution  of  the  ages  the  best  that  can  be  summed 
up  concerning  the  science  of  government  as  regarding 
the  forms  is  expressed  in  Pope's  "Essay  on  Man/'  when 
he  says: 

"For  forms  of  government  let  fools  contest 
What's  best  administered  is  best." 

This  is  simply  an  expression  of  the  truth  that  there 
is  the  human  element  in  the  rulers  as  well  as  the  ruled, 
and  that  the  actual  net  results  must  depend  on  the 
character  and  abilities  of  the  individuals  who  happen 
to  be  in  control  as  well  as  in  the  disposition  of  the 
people  to  accept  the  measures  intended  to  promote 
their  welfare. 

In  a  theoretical  way,  if  a  scientific  philosopher 
was  called  upon  to  decide  as  to  the  best  form  for  human 
government  he  would  reason  logically  in  favor  of  an 
absolute  despotism.  But,  he  would  add,  with  the 
BUT  in  big  capitals,  always  provided  that  there  was  an 
intelligent  and  benevolent  despot.  This  is  the  old- 
time  idea  of  the  "Lord's  Anointed"  as  the  best 
rulers.  The  logic  is  clear  and  certain.  The  object  to 
be  attained  is  public  welfare.  Existing  evils  are  to  be 
remedied  and  measures  for  improvement  adopted.  If 
either  are  wanted  they  are  wanted  without  delay. 
Why  should  the  public  continue  to  suffer  from  evils 


14  THE  GOSPEL  OF  GREED 

or  forego  the  benefits  any  longer  than  is  necessary  to 
effect  a  change? 

The  despot  can  order  the  changes  at  once  and  get 
the  desired  results.  Under  any  form  of  popular  rule 
there  must  be  the  divided  responsibility,  the  system 
of  restrictions  for  the  legislative  machinery  and  the 
delay  generally  before  the  measure  could  be  enacted 
into  a  law  and  put  in  force.  Most  of  all,  there  is  the 
enormous  task  of  convincing  the  mass  of  the  people 
or  even  a  bare  majority,  as  to  the  need  of  the  changes 
proposed.  But  by  the  time  all  this  has  been  accom- 
plished the  conditions  may  have  entirely  changed. 
The  opportunities  may  have  passed  and  the  measures 
enacted  may  give  reverse  results. 

Furthermore  the  despot  could  act  quickly  and 
effectively  in  promoting  industries  or  rewarding  in- 
ventors. He  could  decide  all  disputes  and  administer 
justice  without  the  interminable  delays  of  the  pro- 
ceedings and  appeals,  the  new  trials,  with  reversed 
decisions  in  the  courts  as  constitutionally  provided. 
The  arguments  which  have  so  often  been  presented 
could  be  multiplied  into  a  mountain  of  proof  in  favor 
of  the  scientific  theory  that  depotism,  or  the  rule  of 
the  "Lord's  Anointed,"  is  unquestionably  the  best 
form  of  government. 

It  is  conceded  that  for  primitive  conditions  despot- 
ism must  prevail,  because  the  strong  will  dominate  the 
weak,  and  common  defense  is  the  first  consideration. 
Chosen  chiefs  easily  change  to  hereditary  rulers,  as- 
suming more  and  more  despotic  powers,  but  at  the 
same  time,  by  the  protection  given,  opening  the  way 
for  industrial  development,  which  is  the  basis  for  civili- 


FORMS  OF   GOVERNMENT  15 

zation.  As  long  as  the  despots  can  continue  to  be  real 
leaders,  their  influence  for  promoting  the  good  and 
suppressing  the  evil  must  give  good  results.  With 
further  progress,  including  more  general  intelligence, 
more  varied  conditions  of  industrial  activity  and  more 
established  social  organization,  the  despots  can  have 
less  influence  as  leaders.  Their  powers  will  then  be 
used  more  for  suppressing  anything  that  threatens 
their  control  rather  than  for  encouraging  progressive 
measures  for  the  subjects. 

The  scientific  logic  of  the  argument  for  despots  is 
convincing  until  it  is  asked:  whence  and  where  are 
the  despots  who  are  fitted  for  the  control  with  the 
more  advanced  conditions?  They  would  require  an 
intelligence,  wisdom  and  benevolence  away  beyond 
anything  ever  manifested  by  ordinary  human  beings. 
With  few  exceptions,  and  these  in  a  limited  way, 
despotism  as  a  form  of  government  has  proved  to  be 
a  dismal  failure  for  promoting  the  welfare  of  the  people. 
The  intelligent  despots  are  so  rare  and  the  other  kind 
so  common,  that  the  common  sense  of  humanity  with 
the  knowledge  from  experience  condemns  despots 
and  despotism,  and  hesitates  at  no  sacrifice  of  blood 
and  treasure  in  the  fight  to  the  death  for  the  larger 
freedom  of  the  individual.  The  slower,  more  cumber- 
some and  less  scientific  methods  of  governing  by 
representative  legislative  assemblies,  with  all  the 
mistakes,  blunders  and  possibilities  for  corruption,  give 
better  net  results  for  the  general  welfare. 

The  tendency  for  the  past  hundred  years  has  been 
to  get  away  from  the  despotism  which  ruled  for  previous 
centuries,  in  the  direction  of  more  individual  freedom. 


16  THE  GOSPEL  OF  GREED 

Aside  from  the  republics  established,  the  monarchical 
powers  generally  have  been  obliged  to  concede  more 
and  more  to  the  representative  assemblies  of  the  people 
who  are  being  recognized  as  the  ruling  power. 

The  economic  or  industrial  results  from  this  change 
have  been  astonishing.  With  the  larger  freedom 
came  the  incentive  for  each  to  better  his  own  condition 
by  developing  the  brain  power  so  long  dormant  under 
the  repressive  regulations  of  the  paternal  governments. 
The  old  despotisms  had  little  encouragement  for  the 
dreamers  or  enthusiasts  who  talked  of  mechanism  to 
work  miracles.  They  were  admonished  like  unruly 
children  by  the  wisdom  of  their  superiors. 

Despotism  exalted  the  rulers  and  the  officials  who 
carried  out  the  orders,  but  repressed  the  common 
people  who  were  expected  to  obey.  Unofficial  indi- 
viduals who  showed  business  ability  for  trading  or 
manufacturing  were  regarded  as  more  or  less  dangerous 
and  likely  to  become  conspirators.  So  they  were  al- 
ways at  the  mercy  of  the  officials  who  could  easily 
invent  charges  or  excuses  for  confiscating  the  wealth. 
So  the  industrial  and  business  methods  continued 
practically  unchanged  for  centuries. 

There  was  no  lack  of  bright  minds  in  former  ages 
with  both  inventive  and  trading  ability.  The  proof  of 
this  is  found  in  the  progress  made  and  the  fortunes 
accumulated  in  spite  of  all  the  repression  and  the 
unfavorable  conditions.  But  the  progress  was  slow 
because  the  individuals  worked  mostly  by  secret 
methods,  and  could  not  attempt  much  of  anything  in 
the  way  of  co-operation.  Trading  or  manufacturing 
was  regarded  as  ignoble  for  the  ruling  classes  who 
found  it  easier  to  plunder. 


FORMS  OF  GOVERNMENT  17 

Through  countless  ages  steaming  vapors  and  clouds 
were  offering  their  services  to  man  for  steam  power, 
but  they  made  no  impression  on  his  stolid  gaze.  So 
the  lightning  flashed  its  messages  and  thundered  at 
the  stupidity  of  human  beings  which  refused  the  aid 
of  its  mighty  powers.  The  despots,  benevolent  and 
otherwise,  saw  and  heard  but  learned  nothing  and  did 
nothing  for  their  people,  unless  it  was  to  suppress  any 
visionary  who  might  suggest  that  there  was  a  possi- 
bility of  using  these  great  forces.  It  remained  for 
individuals  to  make  the  studies  and  experiments,  and 
find  the  ways  for  harnessing  the  great  natural  forces, 
thus  giving  the  tremendous  benefits  to  mankind,  with 
some  gain  for  themselves. 

The  younger  generation  cannot  realize  that  the 
people  of  the  world  existed  through  all  the  centuries 
without  steam  or  electricity  in  their  various  develop- 
ments and  applications,  as  well  as  without  the  ma- 
chinery and  mechanical  devices  for  so  many  uses. 
They  take  all  the  modern  conveniences  as  a  matter 
of  course,  and  see  nothing  but  the  defects  in  the  details 
of  the  service.  These  things  did  not  exist  until  men 
were  free  to  work  out  their  ideas  for  profit,  and  the  same 
old  greed  was  the  stimulating  force  that  brought  the 
greater  achievements.  These  were  the  prizes  of 
wealth,  power  and  influence  for  those  who  could  pro- 
duce the  new  values  or  give  better  service.  So  we 
have  had  the  marvelous  inventions,  discoveries  and 
improvements  in  all  departments  of  industry  until  it 
may  be  said  that  in  less  than  a  century  the  face  of  the 
earth  has  been  changed. 

Here  again  the  philosopher  would  say:    Surely  the 


18  THE  GOSPEL  OF  GREED 

people  without  an  exception  must  recognize  the  benefits 
of  such  remarkable  changes,  and  surely  they  must 
give  credit  to  the  system  that  developed  the  wonderful 
improvements.  But  the  human  element  has  a  per- 
verse way  of  reasoning  and  acting.  Defects  are 
magnified  to  obscure  larger  general  results.  The 
common  people  today  have  more  comforts  than  the 
dominating  despots  in  former  times  could  command. 
But  all  this  is  ignored  and  there  are  the  impassioned 
invectives  against  the  inequalities  of  the  very  poor  and 
the  very  rich,  flaunting  luxury  and  suffering  poverty, 
starvation  in  the  midst  of  plenty,  with  oppression  and 
injustice,  the  destructive  trail  of  greed  over  all  and 
the  despair  of  reformers. 

Much  more  of  the  same  kind  might  be  quoted,  all 
going  to  show  that  the  larger  freedom  for  the  leaders 
who  accumulate  the  fortunes  is  carried  too  far,  and 
then  come  the  questions:  Why  should  not  all  share 
in  the  progress?  Why  should  the  few  be  allowed  to 
dominate  and  practically  enslave  the  masses?  Why 
should  there  not  be  a  fairer  division?  Why  let  greed 
run  riot?  There  are  innumerable  other  whys,  usually 
ending  with:  Why  not  have  public  or  government 
control  or  ownership  to  do  away  with  all  these  evils? 

Why  not  have  government  take  possession  of  the 
public  utilities  so-called,  at  first,  and  gradually  extend 
this  control  to  the  leading  industries  supplying  the 
necessities,  and  finally  to  an  ideal  system  of  socialism 
for  all? 


CHAPTER  IV. 

THEORIES  AND  PROMISES  OF  SOCIALISM. 

Authority  for  the  Rulers  and  the  Ruled — The  Kind  of  Equality 
that  Must  be  Enforced  with  Despotic  Power — The  Extreme 
of  Tyrannical  Control. 

There  is  much  that  is  attractive  in  the  ideas  and 
theories  of  socialism  as  usually  presented.  What  could 
be  finer  than  the  pictures  of  all  working  in  harmony 
for  the  common  good,  with  no  domination  of  grasping 
greed  and  no  haunting  fears  of  want  or  starvation? 
The  government  would  control  everything  and  supply 
all  wants,  so  that  all  would  be  happy  and  free  from 
care.  All  is  charming  enough  until  some  rude  ques- 
tioner bluntly  asks:  "Who  or  what  is  this  government 
that  will  do  these  wonderful  things?  What  are  to  be 
its  powers  or  functions,  and  how  will  it  act?" 

Then  the  vision  fades,  for  it  must  be  admitted  that 
the  government,  after  all,  can  be  nothing  more  than 
human  beings  who  will  be  in  control.  Government 
ownership  in  any  form  must  mean  more  arbitrary 
power  for  the  individuals  who  happen  to  be  in  author- 
ity. The  more  government  control  is  extended,  the 
greater  must  be  the  powers  of  the  rulers,  and  the 
more  the  individuals  must  submit.  No  system  of 
government  control  can  be  imagined  without  the  full 
power  to  enforce  its  regulations.  There  could  be  no 
semblance  of  justice  in  having  part  of  the  people  sub- 
mitting and  industriously  working  for  the  common 
good  while  another  portion  would  claim  the  right  to 

(19) 


20  THE  GOSPEL  OF  GREED 

work  or  not  as  they  saw  fit.  The  individuals  in  author- 
ity would  be  obliged  to  enforce  the  rigid  rule  of  no 
work,  —  no  eat,  no  house,  no  clothes,  even  if 
coercion  was  not  applied.  The  bread  must  be  earned 
by  the  sweat  of  the  brow,  just  the  same  as  ever,  and 
in  every  case  the  exact  amount  of  sweat  that  would 
call  for  a  given  amount  of  bread  from  the  common 
supply  must  be  determined  by  the  very  human  indi- 
viduals in  charge.  From  these  decisions  there  could 
be  no  appeal. 

No  matter  how  it  may  be  sugar-coated  or  disguised, 
government  control  up  to  the  limits  of  the  wildest 
socialistic  theories,  at  every  point  implies  the  abso- 
lute power  of  the  individuals  in  authority  to  enforce 
their  regulations  with  punishments  or  death  penalty 
for  those  who  refuse  to  submit. 

The  socialists,  or  government  ownership  advocates, 
make  light  of  this  coercive  feature  by  arguing  that 
the  benefits  from  their  system  would  be  so  inestimable 
that  all  intelligent  human  beings  would  cooperate  to 
the  best  of  their  ability  without  the  need  of  any 
coercion.  But  it  cannot  be  doubted  that  a  very  large 
portion  of  human  beings  would  not  be  controlled  by 
intelligent  reasoning.  The  socialists  themselves,  from 
their  point  of  view,  rail  at  the  stupidity  of  the  great 
majority  who  submit  to  wage  slavery  and  all  the 
other  crushing  evils  which  could  be  so  easily  and  com- 
pletely remedied  according  to  the  socialist  theories. 
The  socialist  agitators  from  first  to  last  continue  to 
explain  how  the  greedy  tyrants  must  be  suppressed 
and  the  victims  liberated,  etc.,  and  all  by  force,  because 
persuasion  could  have  no  effect.  They  say:  "Force; 


THEORIES  AND  PROMISES  OF  SOCIALISM    21 

certainly  force,  to  right  the  wrongs  and  bring  the 
robbers  to  justice.  Why  not?  When  socialism  tri- 
umphs you  will  see." 

Without  considering  anything  about  the  alleged 
rights  or  wrongs,  it  can  be  asked,  How  will  this  force 
be  applied? 

The  answer  must  be  that  there  will  be  a  thoroughly 
organized  government  with  officials  to  enforce  the 
regulations.  Assume  that  these  officials,  no  matter 
how  chosen,  will  be  away  above  the  average  of  human 
beings,  so  that  they  would  not  misuse  their  vast 
powers  or  be  influenced  by  selfish  motives,  there 
would  remain  an  endless  amount  of  differences  of 
opinion  as  to  the  wotk  to  be  done  and  who  should 
do  it.  Humanity  must  have  food,  shelter  and  rai- 
ment, and  these  necessaries  can  be  furnished  only  by 
arduous  labor.  It  cannot  be  imagined  that  the  wage 
slaves  of  the  present  system,  when  liberated  by  the 
triumph  of  socialism,  would  all  of  their  own  accord 
distribute  themselves  into  working  groups  to  provide 
for  all  the  various  and  varying  desires  of  humanity. 
There  must  be  intelligent  direction  and  system  or  all 
would  be  chaos. 

For  any  possible  system  of  using  force  for  control, 
there  must  be  an  organization  with  power  to  act,  and 
this  organization  must  have  a  head  with  authority 
to  command.  Some  individual  human  being  with 
some  kind  of  a  title  must  be  chosen  in  some  way  to 
exercise  this  absolute,  supreme  authority  for  direct- 
ing the  assignment  of  every  other  individual  to  his 
proper  place  in  the  system,  and  arranging  the  plans 
of  rewards  or  punishments  according  to  the  work  done 


22  THE  GOSPEL  OF  GREED 

or  undone  by  each.  Assemblies  may  make  laws  and 
regulations,  but  there  must  be  the  executive  head  and 
subordinates  to  put  them  in  force. 

As  a  test,  therefore,  of  the  sincerity  or  reason- 
ableness of  the  socialistic  theorizing,  ask  any  indi- 
vidual socialist,  high  or  low,  to  name  any  human 
being  (aside  from  himself,  of  course,)  now  living  or 
who  ever  did  live  on  earth,  whom  he  would  vote  for 
to  hold  this  position  of  supreme,  absolute  ruler  of  a 
grand,  world-wide  socialistic  despotism,  or  for  the 
ruler  of  a  nation  or  even  a  single  city? 

The  great  reforms  promised  are  in  the  line  of 
individual  freedom  and  an  approximate  to  an  equal- 
ity for  all.  This  is  to  get  rid  of  the  tyranny  of  the 
capitalistic  employers  who  enslave  the  workers  and 
rob  them  of  their  productions. 

How  would  these  objects  be  attained? 

We  have  examples  of  government  control  in  some 
lines,  like  postal  service,  army  and  navy,  penal  insti- 
tutions and  employes  in  various  governmental  depart- 
ments. Are  these  workers  free  to  come  and  go,  to 
work  or  not  to  work  as  they  chose,  or  must  they  be 
on  hand  at  regular  hours  and  be  subject  to  discipline? 
Are  the  employes  of  the  postal  service  any  better  off 
in  pay,  or  chances  for  advancement,  or  even  tenure 
of  office  or  holding  their  jobs,  than  the  employes  of 
express  companies  under  capitalistic  control?  Then, 
where  is  there  any  suggestion  of  equality  for  all  in 
any  branch  of  public  service? 

As  a  partial  answer  it  is  urged  that  present  con- 
ditions are  not  socialism.  There  is  no  community  of 
interest  and  favoritism  prevails  all  through  the  ser- 
vice. Real  socialism  would  do  better. 


THEORIES  AND  PROMISES  OF  SOCIALISM    23 

But  how?  There  must  be  substantially  the  same 
outfit  of  officials  or  bosses  under  some  titles,  and  some 
must  be  common  workers.  It  would  be  rank  favorit- 
ism for  some  to  be  given  the  more  desirable  occupa- 
tions while  others  were  kept  at  the  disagreeable  work. 
Hence  it  would  be  necessary  as  the  only  alternative, 
to  make  details  after  the  manner  of  drawing  names 
for  jury  service,  or  a  better  example  would  be  the 
routine  of  camp  work  in  the  army,  where  all  the  com- 
mon soldiers  must  take  their  turns  in  the  squads 
detailed  each  day  for  the  different  requirements.  One 
of  the  allurements  of  socialism  is  the  promise  that 
the  idle  rich  will  be  forced  (always  the  force)  to  do 
their  share  of  hard  work  the  same  as  other  laborers. 
But  suppose  that  these  same  idle  rich  happened  to 
get  the  positions  of  government  officials,  where  would 
be  the  gain  for  the  common  workers? 

It  has  been  said  of  Cuba  and  some  others  of  the 
southern  countries  that  the  popular  idea  of  liberty 
and  freedom  was  holding  a  public  office,  and  that  it 
was  galling  tyranny  and  usurpation  when  others  held 
the  offices.  While  this  is  something  of  an  exaggera- 
tion, yet  it  illustrates  the  human  nature  of  much  of 
the  socialistic  ideas  of  opposition  to  the  present  forms 
of  government,  which  provide  by  constitutions  and 
laws  for  the  largest  liberty  of  the  individual  consist- 
ent with  obligations  to  the  social  order  and  for  the 
restriction  of  official  domination. 

The  socialist  propaganda  starts  out  with  a  pro- 
fessed intention  of  giving  still  more  liberties  to  the 
individuals  and  relieving  them  from  oppressive  wage 
slavery  and  other  evils.  To  accomplish  this,  a  sys- 


24  THE  GOSPEL  OF  GREED 

tern  is  proposed  which  coming  around  the  circle  meets 
the  other  extreme  of  absolute  despotism,  with  the 
chance  of  getting  a  benevolent  despot  intelligent 
enough  to  rule  for  the  greatest  good  of  all  his  sub- 
jects. The  names  may  be  different,  but  the  things 
are  the  same.  The  only  difference  is  that  the  social- 
istic theories,  in  so  far  as  they  advocate  government 
control  of  leading  industries,  place  powers  in  the 
hands  of  autocratic  rulers  a  thousand-fold  more  des- 
potic and  absolute  than  was  ever  known  or  attempted 
by  any  dictator  or  despot  in  all  human  history. 

Take  one  little  sample  of  the  socialistic  promises 
and  reasoning  recently  published  in  a  New  York  paper, 
from  a  national  organizer  of  the  Socialist  party  in  the 
United  States,  who  says: 

"People  ask  what  will  happen  under  socialism.  I  cannot 
guess,  but  one  thing  will  happen.  Every  child  will  be  given  an 
education  until  he  is  twenty -one,  so  that  all  may  start  equal. 
Then  a  living  will  be  guaranteed  every  man.  No,  there  will 
be  no  law,  making  a  man  work,  but  there  will  be  no  law  forcing 
him  to  eat  either,  so  it  comes  to  the  same  thing.  When  he  is 
old  the  government  will  see  to  it  that  he  has  a  competence  to 
keep  him,  and  the  poorhouse  will  go  out  of  business." 

Note  here  the  alluring  promises  that  it  is  cruel 
to  question,  but  what  do  they  mean?  No  law  to 
compel  a  man  to  work  and  no  law  to  compel  him  to 
eat.  That  is  to  say,  no  work,  no  bread  ticket;  but 
no  compulsion,  oh  no! 

Then  the  government  guarantees  an  education  to 
every  child,  a  living  to  every  man  and  a  competence 
to  the  old.  Who  will  decide  on  all  these  matters, 
and  where  will  the  necessaries  come  from  to  provide 
for  the  guarantees?  There  must  be  some  big  sup- 


THEORIES  AND  PROMISES  OF  SOCIALISM    25 

plies  accumulated,  all  ready  to  be  served  out,  and 
such  supplies  must  come  from  the  products  of  the 
workers  who  produce  all  the  wealth,  as  claimed.  The 
whole  force  of  officials  must  also  be  provided  for  in 
handsome  style,  of  course,  as  befitting  their  superior 
wisdom.  Hence  the  bread  ticket  compensation  must 
be  cut  down  to  a  fraction  of  the  value  that  labor 
produces,  and  the  government  must  take  all  the  pro- 
ducts. 

But  this  is  exactly  what  is  now  being  done  by  the 
existing  system,  and  this  taking  of  wealth  that  labor 
is  said  to  create  is  the  basis  of  the  socialistic  demand 
for  a  change.  As  far  as  the  workers  are  concerned, 
the  change  must  mean  more  robbery.  The  capital- 
istic robbers  who  now  take  a  share  of  the  product 
are  taxed  for  schools  and  poorhouses,  but  a  much 
larger  share  would  be  needed  for  the  mysterious  gov- 
ernment that  would  do  so  much  better  for  the  young, 
and  provide  a  competence  for  the  old  so  much  better 
than  the  poorhouses  that  would  go  out  of  existence. 

How  much  there  is  in  a  name.  If  there  is  an 
objection  to  the  long  ears  of  a  jackass,  just  pass  a 
law  changing  his  name  to  horse,  and  as  a  horse,  of 
course  his  ears  must  presumably  be  shortened.  There 
is  the  problem,  also,  of  the  snake  swallowing  his  own 
tail  and  continuing  the  swallowing  until  nothing 
remains.  These  are  simple  propositions  in  compari- 
son to  the  socialistic  promises  of  freedom  from  wage 
slavery  for  the  workers  and  full  value  of  the  product 
for  labor,  while  at  the  same  time  providing  for  gov- 
ernment taskmasters  to  dole  out  the  bread  ticket 
compensation  and  take  over  the  entire  production  of 


26  THE  GOSPEL  OF  GREED 

the  workers  to  be  used  at  the  discretion  of  the  offi- 
cials in  making  good  some  of  the  grand  results  as 
promised. 

It  is  easy  to  imagine  how  this  particular  socialistic 
authority  fairly  gloats  over  the  idea  that  some  day, 
with  the  triumph  of  socialism,  he  may  be  in  the  posi- 
tion of  official  taskmaster  in  charge  of  a  squad  of 
ex-millionaires  reduced  to  the  ranks  of  common 
workers.  How  he  would  enjoy  cutting  down  their 
bread-ticket  compensation  and  sending  them,  with 
the  worst  patched  uniforms,  to  the  poorest  sleeping- 
bunks,  by  an  arbitrary  decision  to  the  effect  that 
it  was  more  than  they  had  earned.  What  he  does 
not  consider  is  the  chance  that  he  might  be  in  the 
ranks,  wearing  his  numbered  tag,  and  at  the  mercy 
of  some  other  cranky  official  in  command,  whose 
whims  would  be  the  law  that  must  be  obeyed. 

The  force  for  maintaining  discipline  and  order,  as 
well  as  for  protecting  the  supply  depots  and  guarding 
the  exalted  rulers,  must  be  military,  of  course.  So 
the  cold  fact  of  socialism  is  the  extreme  of  military 
despotism  with  its  whips,  bayonets  and  summary  exe- 
cutions. 

This  is  a  feature  of  socialism  that  is  never  exploited 
or  explained  as  one  of  the  ideal  charms.  From  the 
standpoint  of  the  officials,  the  enforced  equality  might 
have  its  attractiveness,  but  for  the  majority  in  the 
ranks  who  must  obey  the  orders  or  suffer  the  penal- 
ties, the  system  would  have  a  less  pleasing  aspect. 

It  is  unnecessary  to  go  into  details  of  the  various 
socialistic  theories  as  they  are  worked  out  by  the 
assumed  authorities,  because  each  has  his  own  ideals 


THEORIES  AND  PROMISES  OF  SOCIALISM    27 

as  to  what  should  be  done,  and  no  one  would  consent 
to  submit  to  the  direction  of  any  of  the  others.  Each 
has  a  firm  fanatical  belief  in  his  own  wisdom  and  his 
own  destiny.  Can  any  one  listen  to  a  socialistic  orator, 
with  his  tirades  of  vituperation  against  capitalistic 
greed,  the  money  devil  and  the  existing  social  order 
generally,  and  have  any  doubt  remaining  as  to  the 
autocratic  authority  he  would  assume  if  placed  in 
power?  Then  with  such  power,  what  would  be  in 
store  for  those  who  differed  with  him  or  criticized 
his  actions,  or  who  attempted  to  organize  opposition 
to  vote  him  out  of  office?  Where  would  they  go  for 
food,  clothing  and  shelter? 

While  it  must  be  evident  that  socialistic  theories 
call  for  the  extreme  of  autocratic  authority  on  the 
part  of  the  individuals  who  happen  to  get  the  con- 
trol, yet  it  might  be  argued  that  the  form  or  system 
of  government  is  of  less  importance  provided  it  gives 
the  results.  Call  it  autocracy,  despotism,  commun- 
ism, anarchy  or  anything  you  please,  the  essential 
question  is:  Will  it  improve  human  conditions  and 
do  away  with  human  misery  or  not?  If  the  larger 
freedom  for  the  individual  has  intensified  the  action 
of  the  baser  human  passions  so  that  unrestricted  greed 
works  more  misery  than  autocratic  absolutism,  then 
some  phase  of  the  latter  is  to  be  preferred  in  spite 
of  the  objectionable  name. 

Of  course  the  important  consideration  would  be, 
as  previously  explained,  the  chances  of  getting  the 
intelligent  and  benevolent  despots.  But  assume  that 
the  mere  profession  of  socialism  would  transform  or 
regenerate  the  chosen  officials  under  the  new  system 


82  THE  GOSPEL  OF  GREED 

so  that  the  baser  passions  would  all  be  eliminated 
from  their  natures,  and  that  they  would  stand  for 
the  highest  type  of  philanthropic  love  for  their  fellow- 
man.  Suppose,  also,  that  they  would  become  inspired, 
so  to  speak,  with  a  higher  than  human  wisdom  for 
regulating  affairs,  how  would  the  theories  work  out 
in  the  economic  results  for  promoting  public  welfare? 
Anything  like  a  full  discussion  would  cover  a  wide 
range  of  human  affairs,  and  could  not  be  attempted 
in  this  connection,  but  some  of  the  fundamental  prin- 
ciples may  be  given  and  the  facts  and  conditions  out- 
lined, which  will  aid  materially  in  reasoning  out  the 
correct  conclusions. 


CHAPTER  V. 

PROGRESS  OF  CIVILIZATION. 

Not  Evolutionary  or  Constant,  but  always  the  Work  of  Indi- 
viduals with  Superior  Abilities — Rise  and  Fall  of  Nations 
— No  General  or  Spontaneous  Movement  Possible  but 
Co-operation  with  Leaders  is  Necessary. 

Any  candid  inquiry  as  to  the  present  human  con- 
ditions would  bring  out  an  overwhelming  mass  of 
evidence  showing  how  the  conditions  have  been 
improved  from  the  primitive  savagery,  with  all  the 
hardships  and  sufferings  of  the  struggle  for  exist- 
ence, up  through  all  the  stages  to  the  present  knowl- 
edge and  control  of  the  forces  of  nature  which  give 
the  results  as  we  have  them. 

Did  this  progress  or  these  results  come  spontane- 
ously, like  the  growth  of  vegetation,  and  were  all 
human  beings  affected  in  the  same  way  or  not? 

Well,  come  to  think  of  it,  the  results  are  not  the 
same.  In  fact,  there  can  be  found  at  the  present 
day,  somewhere  on  earth,  and  often  almost  side  by 
side,  all  the  different  stages  of  what  is  termed  civil- 
ization, from  the  lowest  primitive  savagery  of  the 
animal  type  up  to  the  highest  development  of  human 
intelligence,  with  all  the  comforts  and  luxuries  that 
the  widest  knowledge  provides.  Not  only  do  the  dif- 
ferent material  conditions  exist,  but  there  can  also 
be  found  somewhere  about  every  form  or  system  of 
government  that  could  be  imagined,  and  some  of 
which  modern  reformers  put  forth  as  inspired  revela- 

(29) 


30  THE  GOSPEL  OF  GREED 

tions  from  their  own  brains.  It  is  needless  to  specify 
as  to  these  facts.  Take  a  map  of  the  world  and  read 
the  current  reports  from  "Greenland's  icy  mountains 
to  India's  coral  strand."  Why  these  astonishing  dif- 
ferences, if  all  men  are  created  equal,  and  civilization 
is  an  impersonal  evolution? 

The  Omnipotent  Power  which  created  the  universe 
and  the  world  with  all  that  it  contains  may  have 
blundered  by  not  creating  all  men  physically  and 
mentally  equal,  but  the  inequalities  have  always 
existed  and  will  continue  to  the  end  of  time  in  spite 
of  all  that  the  superior  wisdom  of  would-be  reformers 
can  suggest  to  the  contrary.  Neither  is  there  any 
evidence  of  fact  in  human  experience  or  human  his- 
tory to  warrant  the  notion  that  civilization  is  an 
evolution  ascending  to  some  fixed  law,  analogous  to 
the  theory  of  evolution  in  the  animal  or  vegetable 
kingdoms.  If  history  proves  anything,  it  proves  that 
civilization  is  not  a  continuous  progress,  because  what 
is  history  but  a  record  of  nations  and  people  that 
have  risen,  flourished,  decayed  and  disappeared?  Then 
who  can  venture  a  suggestion  as  to  the  pre-historic 
civilization  as  evidenced  by  the  time-defying  ruins 
in  Egypt,  Central  Africa,  India  and  the  Far  East, 
Mexico  and  South  America?  Our  nation,  with  its  cen- 
tury of  progress  is  but  an  infant  compared  with  older 
civilizations  that  flourished  for  ages  and  were  blotted 
out,  leaving  only  the  ruins  to  cause  wonder  at  the 
knowledge  of  mechanical  forces  which  enabled  the 
builders  to  erect  the  structures. 

What  then  is  the  mystery  of  civilization,  or  how 
explain  the  progress  and  decay  at  different  times 
and  places? 


PROGRESS  OF  CIVILIZATION  31 

There  is  only  one  rational  and  adequate  explanation, 
and  that  is  that  all  progress  for  humanity,  materially, 
socially  or  morally  is  due  absolutely  to  the  work  of  in- 
dividuals who  are  created  with  superior  abilities,  and 
who,  whatever  may  be  their  motives  or  intentions, 
introduce  plans  or  methods  which  bring  positive  results. 
Spontaneous  evolution  of  human  intelligence  or 
human  knowledge  is  unthinkable  and  impossible,  be- 
cause each  human  being  must  acquire  knowledge  for 
himself,  and  unless  there  are  some  who  have  superior 
powers  of  observation  or  reasoning  there  can  be  no 
advance  beyond  what  is  previously  known  by  the 
teachers.  There  is,  of  course,  the  knowledge  accumu- 
lated from  experience  and  handed  down  by  the  teachers, 
which  appears  like  an  evolutionary  growth,  but  none 
the  less,  every  addition  at  every  stage  to  this  knowledge 
must  come  from  individuals  in  some  way  superior  to 
their  fellows. 

The  first  glimmering  of  progress  towards  a  higher 
civilization  comes  with  the  idea  of  co-operation.  The 
individual  savage  feels  the  need  of  protection  and  joins 
with  others  for  this  purpose.  This  develops  the  tribal 
system  for  government.  In  an  industrial  way  he 
looks  on  a  fallen  tree  which  is  beyond  his  power  to 
move.  He  calls  assistance  and  the  tree  rolled  to  the 
water  enables  him  to  float.  This  is  the  limit  of  progress 
until  some  bright  individual  gets  the  idea  that  the 
branches  can  be  trimmed  off,  and  a  portion  burned 
out  with  red-hot  stones  to  make  a  canoe.  So  this  one 
works  for  days  or  weeks  at  the  canoe  because  he  reasons 
that  others  will  want  to  use  it  and  will  gladly  trade  him 
something  of  value  for  its  use. 


32  THE  GOSPEL  OF  GREED 

Another  bright  individual  hits  upon  the  idea  of  a 
bow  and  arrow  for  killing  animals  as  an  improvement 
over  the  clubs  and  stones,  and  the  others  are  willing  to 
give  him  a  share  of  the  game  for  the  use  of  his  bows  and 
arrows.  Still  another  bright  individual  suggests  the 
idea  of  a  wigwam  or  tent  of  skins,  which  can  be  moved 
from  place  to  place  and  is  a  great  improvement  over 
the  previous  cave  dwellings,  and  he  expects  pay  for 
his  tents.  Another  finds  that  certain  vegetation  can 
be  cultivated  for  food,  or  certain  animals  domesticated. 
So  on  through  all  the  various  lines  the  conditions  are 
improved  step  by  step,  always  provided  that  the 
bright  ones  suggesting  the  changes  are  rewarded  and 
encouraged  instead  of  being  suppressed. 

Some  one  first  suggested  the  method  of  tanning 
the  skins  of  animals  for  clothing.  Some  one  suggested 
the  idea  that  trees  could  be  cut  down.  Another 
thought  out  a  way  for  cutting  the  tree  into  slabs  or 
boards.  Some  one  produced  an  axe,  and  later  some 
one  devised  a  saw.  These  ideas  made  building  of 
houses  possible.  Some  one  first  smelted  iron  ore  and 
some  one  first  tempered  steel  for  tools.  Some  one 
first  made  discoveries  in  producing  and  using  other 
minerals.  Some  one  first  quarried  stone,  and  some  one 
first  made  brick.  Some  one  first  introduced  the  lever 
and  the  pulley  block  for  multiplying  power.  Some  one 
first  made  a  boat,  and  some  one  first  hoisted  a  sail  on  a 
pole.  Some  one  first  got  the  idea  of  a  keel  and  rudder 
for  the  boat,  which  opened  the  seas  for  navigation. 
Some  one  first  stored  a  supply  of  food  or  other  articles 
in  addition  to  his  own  wants,  which  he  held  to  supply 
the  wants  of  others,  and  some  one  first  loaded  a  cargo 


PROGRESS  OF  CIVILIZATION  33 

for  trading  in  distant  lands,  which  was  the  origin  of 
merchandising  and  commerce. 

So  we  might  go  on  with  the  endless  enumeration  of 
the  ideas  originated  and  the  improvements  that  fol- 
lowed along,  each  one  adding  something  of  importance 
which  was  recognized  as  valuable  and  adopted.  The 
grand  combination  of  all  the  ideas  with  co-operation 
gives  the  results  in  our  highest  industrial  developments. 
The  changes  do  not  come  spontaneously  or  regularly. 
Some  industries  run  for  long  intervals,  even  to  centuries, 
with  the  same  methods  and  routine  until  the  indi- 
vidual appears  whose  ideas  are  adopted  for  better 
results  with  radical  changes.  At  the  same  time,  as 
corroborating  evidence,  note  well  the  fact  that  where 
knowledge  of  these  ideas  is  lacking  or  where  co-opera- 
tion fails  to  make  use  of  them  we  find  the  varying 
degrees  of  backward  civilization  now  existing  down 
to  the  primitive  savagery  of  the  conditions  in  darkest 
Africa. 

If  one  tribe  encourages  its  bright  minds  it  is  soon 
able  to  dominate  over  other  tribes,  and  if  governing 
leaders  are  developed  at  the  same  time  it  will  soon 
be  classed  as  a  nation.  Ultimately  with  the  leadership 
of  an  Alexander  or  a  Caesar  it  may  dominate  over  the 
known  world. 

But  note  on  the  other  hand,  that  with  the  death 
of  the  Alexander  or  the  Caesar  there  is  no  inherent 
power  or  ability  in  the  mass  of  the  people  to  hold  the 
control  they  won.  The  soldiers  are  equally  brave  in 
fighting  the  battles,  but  the  results  in  victories  or 
defeats  depend  on  the  generals  who  plan  and  lead. 

The  arguments  or  examples  in  this  line  could  be 


34  THE  GOSPEL  OF  GREED 

multiplied  indefinitely,  and  on  the  other  hand  a  con- 
certed movement  by  a  common  impulse  for  any  pur- 
pose by  any  considerable  number  of  human  beings  is 
beyond  the  range  of  possibility. 

It  may  be  stated  therefore  as  a  fundamental  princi- 
ple of  political  economy  that 

AH  progress  for  humanity  or  all  improvements  in 
human  conditions  must  come  first,  from  the  initiative 
of  some  individuals,  and  the  development  or  progress 
depends,  secondly,  on  the  support  or  co-operation 
given  to  the  individuals  by  the  others  who  would  bene- 
fit from  the  same. 

This  principle  holds  good  in  all  forms  of  industry  as 
well  as  in  the  purely  political  details  of  government, 
and  yet  it  is  practically  ignored  by  most  writers  who 
aim  to  make  a  philosophic  study  of  human  affairs. 
The  history  of  any  nation  or  people  is  a  detail  of  what 
was  done  by  their  leaders  either  for  success  of  failure. 
Of  course,  the  leaders  could  accomplish  nothing  without 
the  co-operation  of  the  people  as  a  whole,  but  if  the 
same  people  make  dismal  failures  with  poor  leaders 
are  not  the  successes  due  primarily  and  absolutely  to 
the  ability  of  the  leaders? 

But  why  all  this  emphasis  on  individualism  in  the 
changes?  All  evolution  in  the  natural  order  comes 
through  the  individual  variations  or  changes.  Evo- 
lution is  simply  the  progress  of  the  changes,  and  why 
not  refer  in  the  same  way  to  the  progress  of  an  in- 
dustry? 

But  there  is  a  wide  difference  when  it  comes  to 
human  affairs,  because  with  every  change  in  industrial 
methods  there  must  be  the  idea  of  additional  profits 


PROGRESS  OF  CIVILIZATION  35 

involved.  No  profit,  no  change — is  the  inflexible  rule'. 
No  man  will  go  to  the  trouble  and  expense  of  working 
out  a  new  idea  unless  he  believes  that  his  idea  will  be 
adopted  and  paid  for.  In  other  words,  it  comes  back 
to  the  same  old  greed  for  gain  which  is  the  incentive 
for  all  the  changes  and  improvements  from  the  first 
to  the  last. 

It  is  common  enough  to  speak  of  the  growth  of  an 
industry  or  the  progress  of  an  industry  in  a  particular 
locality,  and  in  a  general  way  it  is  assumed  that  this 
progress  comes  of  its  own  accord  or  from  some  natural 
force  or  from  the  environment.  But  a  moment's 
thought  will  make  it  clear  that  the  growth  or  progress 
is  wholly  the  work  of  individual  concerns  which  hap- 
pened to  locate  in  the  place.  In  a  minor  way  they 
may  help  each  other,  giving  some  considerable  ad- 
vantage, but  in  a  larger  way  the  progress  is  due  entirely 
to  the  individuals.  If  there  is  any  doubt  on  this  point 
the  proof  is  found  in  the  number  of  failures,  notwith- 
standing any  assumed  or  actual  advantages  of  location. 
With  the  evolutionary  theory  there  could  be  no  failures, 
because  all  would  be  affected  alike  and  all  make  sub- 
stantially the  same  progress. 

General  conditions  favor  or  limit  the  growth  of 
industries,  it  is  true,  and  when  the  conditions  warrant 
there  is  the  increase;  so  why  split  hairs  about  the  term 
evolution? 

Because  in  any  consideration  of  causes  or  of  meas- 
ures affecting  an  industry  for  good  or  bad  the  ideas  of 
the  individuals  and  their  chances  for  profit  must  be 
taken  into  account.  With  the  workers  or  wage- 
earners  the  rule  is:  no  pay,  no  work;  and  from  the  fact 


36  THE  GOSPEL  OF  GREED 

that  factory  establishments  are  in  operation  it  does 
not  follow  that  they  will  continue  to  run  without  the 
incentive  of  profit.  An  improvement  introduced  in 
one  establishment  is  quickly  adopted  by  the  others, 
and  this  change  has  the  appearance  of  an  evolution, 
but  the  improvement  came  from  some  individual  and 
not  from  any  general  influence  affecting  the  whole 
industry.  Often  when  a  new  machine  or  device  is 
introduced  but  few  of  the  establishments  can  be  in- 
duced to  give  it  a  trial,  and  if  it  is  a  success  these  few 
will  get  the  results  in  the  saving  of  cost  before  the 
others  wake  up  to  the  fact  of  its  importance. 

With  a  great  number  of  individuals  controlling  in 
any  line  so  many  are  likely  to  be  influenced  in  the  same 
way  by  the  same  causes  that  it  is  allowable  to  speak 
of  general  movements  of  industries  when  it  is  a  question 
of  the  results.  But  if  it  is  a  question  as  to  how  certain 
causes  are  likely  to  affect  industries  it  is  necessary  to 
consider  the  personality  of  the  individuals  whose 
operations  make  up  the  total  of  production.  They 
may  be  scared  into  shut-downs  or  encouraged  for  in- 
creasing the  output.  So  there  are  found  scarcity 
and  high  prices  for  products  at  times,  while  at  other 
times  there  will  be  overproduction  with  ruinously  low 
prices,  with  the  same  industrial  organization  and 
substantially  the  same  workers. 

The  scientist  with  his  ideas  of  fixed  rules  working 
from  cause  to  effect  for  the  natural  forces  is  utterly 
at  a  loss  to  explain  conditions  which  are  so  different 
from  what  logic  and  philosophic  reasoning  would 
indicate. 


CHAPTER  VI. 

CREATION  OF  WEALTH. 

Intelligence  the  Real  Creative  Power — Labor  a  Factor  that 
can  do  Nothing  of  Itself — The  Claims  of  Socialism — 
Inventors  as  Wealth  Creators — The  Grand  Incentive  for 
Human  Effort  that  Brings  the  Results. 

Any  consideration  of  the  material  welfare  of  hu- 
manity must  take  into  account  the  creation  of  wealth, 
which  is  the  basis  for  all  human  progress,  and  inci- 
dentally the  cause  for  the  constantly  continuing 
disputes  between  individuals,  as  well  as  for  the  general 
wars  waged  for  conquest  or  destruction. 

Whether  the  earth  with  all  that  it  contains  was 
created  in  six  days  or  developed  through  six  million 
years  is  not  an  issue  in  economic  discussion.  As  far 
as  human  knowledge  goes  the  earth  was  substantially 
in  its  present  condition,  with  its  stores  of  minerals, 
its  abundance  of  vegetable  growth,  and  its  variety  of 
animal  life,  all  at  the  service  of  the  human  race.  But, 
with  few  exceptions,  nothing  of  all  this  vast  profusion 
of  products  is  in  shape  for  immediate  use  by  human 
beings.  Animals  must  be  killed,  trees  must  be  cut 
down,  grain  or  fruits  must  be  gathered  and  prepared 
more  or  less,  and  some  must  be  cultivated.  Fibers 
must  be  prepared  for  textiles,  minerals  must  be  mined 
and  worked  into  useable  forms.  In  short,  everything 
is  ready  at  hand  for  man's  use  when  he  learns  how  to 
use  the  materials. 

The    production    or   creation    of   wealth    consists 

(37) 


38  THE  GOSPEL  OF  GREED 

essentially  in  taking  the  various  materials  or  products 
which,  as  it  is  said,  nature  provides  and  transforming 
them  into  conditions  for  man's  use.  The  grand  result 
is  a  mass  of  articles  known  as  wealth  which  also  in- 
cludes domesticated  animals,  land  control  and  prac- 
tically everything  that  can  be  transferred  from  one 
ownership  to  another.  The  various  details  of  getting 
the  crude  materials  into  shape  for  use  or  for  trans- 
ferring ownership  is  known  as  production  or  creation 
of  wealth.  The  creation  consists  in  giving  a  value 
to  the  transformed  materials  that  did  not  exist  before. 
So  also  animals  or  land  can  be  improved  and  made 
more  serviceable  or  more  valuable. 

But  all  these  changes  must  be  made  by  human 
beings  and  by  human  effort  which  is  generally  termed 
labor.  Hence  we  have  the  logical  conclusion  that 
labor  is  the  creator  of  all  wealth,  or,  as  is  often  ex- 
pressed, all  wealth  is  produced  by  labor. 

As  a  broad,  general  proposition  this  cannot  be 
disputed,  and  yet  it  is  the  basis  for  an  unlimited  amount 
of  blundering  and  false  reasoning  that  is  positively 
destructive  in  its  effects  on  humanity.  The  whole 
socialistic  propaganda  is  based  on  a  wrong  construction 
of  this  principle  and  a  chop  logic  fallacy  of  giving 
entirely  different  meanings  to  the  term  labor. 

When  it  is  stated  that  all  the  changes  involved  in 
wealth  production  are  due  to  human  agency  or  human 
effort,  a  great  deal  more  is  implied  than  the  purely 
physical  action  which  is  the  restricted  meaning  of  the 
term  labor.  The  human  effort  for  wealth  creation 
must  be  very  much  more  mental  than  physical,  and 
without  the  intelligence  for  directing,  the  physical 


CREATION  OF  WEALTH 


labor  would  be  worthless.  A  thousand  men  might 
sit  down  beside  a  pile  of  materials  for  a  thousand 
years,  if  they  could  exist  so  long,  but  there  could  be 
no  building  erected  until  the  directing  intelligence 
appeared  with  the  plans  and  gave  the  instructions  for 
all  the  details  of  the  work.  All  the  materials  at  the 
service  of  humanity  have  existed  under  and  above  the 
earth's  surface  for  countless  ages,  and  labor  was  all 
the  time  present.  Why  did  not  labor  go  ahead  with 
the  wealth  production?  Why  did  it  remain  for  the 
Nineteenth  century  to  show  the  grand  results  of  the 
progress  in  all  lines? 

Karl  Marx,  who  is  called  the  father  of  scientific 
socialism,  argued  that  the  only  human  agency  in- 
volved in  the  production  of  wealth  from  the  materials 
or  forces  provided  by  nature  was  manual  labor,  and 
that  in  this  respect  one  man  was  practically  equal  to 
another.  So  it  followed  that  the  amount  of  wealth 
that  any  man  could  produce  was  measured  by  the 
number  of  hours  he  labored,  and  a  distribution  on  this 
basis  would  insure  a  practical  equality  for  all. 

It  seems  almost  absurd  to  answer  such  naively 
childish  reasoning  as  this,  and  yet  it  is  held  as  axiomatic 
or  self-evident  by  a  very  large  portion  of  our  modern 
trade  union  membership.  The  Western  Federation 
of  Miners  which  caused  so  much  trouble  in  Idaho, 
Montana  and  Colorado  carried  in  white  letters  on 
their  mine  cars  the  words: 

"Labor  creates  all  wealth. 
Wealth  belongs  to  the  producers  thereof." 

This  is  the  Karl  Marx  theory  that  the  capitalist  is  a 


40  THE  GOSPEL  OF  GREED 

robber  taking  from  labor  the  value  it  creates,  and  that 
the  workers  should  organize  and  eliminate  the  capital- 
ists entirely,  taking  all  the  product  for  themselves. 

The  original  Karl  Marx  proposition  makes  no  dis- 
tinction between  the  different  kinds  of  labor  in  the 
results.  The  ditch  digger  and  the  skilled  mechanic 
are  all  on  the  same  basis.  The  brawny  worker  is 
rated  the  same  as  the  weakling,  and  the  physical  giant 
who  exerts  his  strength  to  the  utmost  can  claim  no 
more  than  the  dwarf.  The  fence  whitewashes  the 
house  painter  and  the  great  artist  at  his  canvas  all 
work  with  brushes  and  colors,  making  the  same  mo- 
tions. If  they  worked  the  same  number  of  hours  the 
Marx  theories  would  allow  them  exactly  the  same 
amount  from  the  common  supply;  that  is  to  say,  they 
could  have  rations,  some  clothing  and  a  sleeping  bunk 
in  the  barracks  provided. 

Modern  socialists  with  ordinary  intelligence  realize 
the  absurdity  of  the  Karl  Marx  ideas  even  from  the 
physical  labor  standpoint,  and  so  they  give  a  collective 
meaning  to  the  term  labor  which  allows  for  differences 
of  the  individual  ability,  but  still  assumes  that  labor 
as  a  whole  creates  all  wealth,  and  should  have  all  the 
products.  But  even  as  modified  the  Socialistic  theories 
could  apply  only  to  primitive,  savage  conditions 
where  all  were  working  without  tools  or  implements  of 
any  kind.  With  the  first  step  in  development  of  the 
inventions  of  the  bow  and  arrow  or  the  burned-out 
canoe  there  is  at  once  a  difference  in  the  value  of  the 
products,  and  the  inventors  can  claim  a  larger  share. 
The  crudest  kind  of  savage  intelligence  would  recognize 
the  value  of  the  bow  and  arrow  which  made  the  killing 


CREATION  OF  WEALTH  41 

of  game  so  much  easier  and  less  dangerous,  while 
giving  an  increased  supply  of  meat.  There  never  was 
a  savage  so  stupid  as  to  refuse  to  share  with  the  arrow 
maker  who  furnished  the  weapons.  And  yet  according 
to  the  alleged  scientific  Socialism,  the  arrow  maker 
would  be  entitled  to  nothing  unless  he  joined  in  the 
chase  with  the  others,  and  worked  an  equal  number 
of  hours.  The  savage  would  also  give  a  larger  share  to 
the  chief  who  organized  and  directed  the  hunt,  assign- 
ing the  men  to  their  positions  for  driving  and  inter- 
cepting the  game.  Scientific  Socialism  would  say: 

"Hunters  capture  all  game. 
Game  belongs  to  the  hunters  thereof." 

If  the  arrow  makers  or  the  chiefs  object,  knock  them 
on  the  head.  Why  should  they  rob  the  hunters  who 
do  all  the  work  of  killing  the  game? 

But  even  without  this  idea  of  a  share  for  the  leaders 
or  the  inventors  there  would  remain  the  question  of 
distribution  for  the  individuals.  The  physically  strong 
will  produce  more  than  the  weak,  and  the  man  who 
works  ten  to  twelve  hours  a  day  will  produce  more 
than  the  chronically  tired  who  works  only  half  time. 
Who  will  decide  on  all  these  points? 

Of  course  it  must  be  the  all-wise  government  which 
would  be  represented  by  the  boss  in  charge  of  the  work- 
ing squad.  If  he  had  any  crude  ideas  of  justice  he 
would  necessarily  give  twice  as  much  in  the  bread- 
ticket  payments  to  the  stronger  or  the  more  industrious 
who  turned  out  twice  as  much  wealth. 

But  this  would  mean  inequalities  again.  Those 
who  earned  double  bread-tickets  could  claim  pie  or 


42  THE  GOSPEL  OF  GREED 

confectionary  for  the  extra  tickets.  They  would 
proceed  to  flaunt  these  luxuries  in  the  faces  of  the 
others  who  were  deprived  of  the  same,  and  might  even 
aspire  to  become  bosses.  So  right  at  the  outset  the 
theories  of  equality  for  all  under  the  Socialistic  dispen- 
sation dissolve  like  pretty  soap-bubbles. 

An  adaptation  of  the  Karl  Marx  theories  or  the 
more  modern  scientific  Socialism  would  be  something 
like  the  following: 

Here  in  a  certain  place  is  a  great  industrial  estab- 
lishment, big  buildings  all  filled  with  machinery,  a 
power  plant  and  a  stock  of  materials.  How  did  it  come 
there?  Why,  it  grew  of  its  own  accord  the  same  as 
the  trees  grow.  After  a  while  along  comes  a  lot  of 
men  strolling  by  and  they  say  with  one  accord :  "  Hello ! 
Here's  a  nice  factory.  Let's  go  in  and  go  to  work." 

They  go  in  and  get  to  work,  each  finding  his  proper 
place  in  the  system  by  some  kind  of  instinct,  and  the 
great  establishment  starts  up.  It  runs  along  in  an 
automatic  way,  the  products  going  out  and  selling 
themselves,  and  the  money  returning  to  the  cashier 
for  distribution. 

Then  along  comes  another  individual,  probably 
a  thin-legged,  sick-looking  little  shrimp,  or  possibly 
a  bloated,  boastful  specimen  of  a  plutocrat,  who  says: 
"Why,  here's  a  fine  establishment  all  working,  I  guess 
I  might  as  well  go  in  and  take  possession  of  the  office 
and  boss  it." 

So  he  goes  in  and  informs  the  cashier  and  the  book- 
keepers that  in  future  he  will  look  after  the  buying  and 
selling,  and  will  take  a  share  of  profit  for  his  trouble, 
while  the  real  workers  must  be  content  with  the  bal- 


CREATION  OF  WEALTH  43 

ance.  Strangest  of  all,  the  workers  quickly  submit 
and  take  their  share  as  allotted,  until  a  real  Scientific 
Socialist  happens  along  to  tell  them  that  all  capital 
is  robbery,  and  all  employers  are  robbers,  while  the 
idea  of  profits  should  not  be  tolerated.  The  remedy, 
if  they  are  real  men,  is  to  throw  out  the  interloping 
boss  and  continue  the  business  without  him. 

This  sounds  silly  enough,  and  yet  it  is  only  another 
way  of  stating  the  claim  that  labor  is  entitled  to  all 
the  value  of  the  product  it  produces.  Even  the  craziest 
Socialistic  ranter  must  admit  that  the  factory  estab- 
lishment did  not  spring  up  over  night  like  a  mushroom. 
Some  one  made  the  brick  and  some  one  sawed  the 
lumber,  some  one  planned  the  factory  building  and 
paid  for  the  materials  as  well  as  the  labor  for  erecting  it. 
Some  one  devised  the  machinery  used,  some  workers 
were  paid  for  making  it.  Some  one  laid  out  the  plans 
for  the  work  in  all  the  details  from  the  materials  to  the 
finished  product.  All  this  was  done  before  a  single 
worker  was  employed.  Coming  along  individually 
looking  for  employment,  the  workers  recognize  the 
fact  of  the  investment  in  the  plant,  and  also  the  fact 
that  all  possible  claims  for  labor  up  to  that  point  have 
been  satisfied,  as  well  as  the  claims  for  the  labor  which 
produced  the  materials  used  in  the  establishment. 

When  looking  for  employment  the  workers  are 
willing  to  make  such  terms  as  they  can  with  the  owner 
of  the  factory  who  takes  all  the  risks  of  success  or 
failure.  There  is  an  absolutely  clear  and  distinct 
understanding  at  the  outset  by  which  the  workers 
agree  to  give  a  certain  service  for  a  certain  payment  in 
the  form  of  wages.  But  no  sooner  is  the  factory  estab- 


44  THE  GOSPEL  OF  GREED 

lishment  in  operation  with  its  force  of  workers  than 
the  latter  set  up  their  claim  to  joint-ownership.  They 
say  in  effect  that  as  the  factory  could  not  turn  out  a 
product  without  labor: 

"We  will  insist  on  our  own  terms  as  to  what  share 
we  shall  have.  We  will  form  our  labor  unions,  make 
our  own  rules  for  working,  and  will  strike  if  our  de- 
mands are  refused." 

This  is  rather  arbitrary,  but  not  altogether  unjust 
because  it  is  for  the  workers  to  say  whether  they  want 
to  work  or  not,  and  also  to  say  on  what  terms  they  will 
work.  But  they  do  not  stop  at  this.  They  go  further, 
according  to  the  trade  union  idea,  and  say  in  effect: 

"You  cannot  run  your  establishment  without 
labor,  and  that  means  our  labor.  You  were  free  to 
employ  any  one  who  offered  himself  when  you  started, 
but  having  employed  us  your  freedom  of  action  ter- 
minated. Having  been  employed  for  anything  over  a 
week  gives  us  vested  property-rights  in  the  establish- 
ment. If  we  stop  working  or  strike,  and  you  attempt 
to  hire  other  workers  in  our  places,  we  will  use  the 
whole  power  of  our  labor  organization — first,  to  destroy 
the  scabs  who  would  take  the  work  and  accept  the 
terms,  we  refuse;  and,  second,  we  will  do  our  utmost  to 
destroy  your  business  by  boycott  or  other  form  of 
attack  that  we  think  will  work  to  your  injury." 

The  labor  unions  uphold  this  view  as  stated  and 
justify  their  action  by  the  plea  that  it  is  necessary  for 
promoting  the  interests  of  the  wage  workers,  and  as 
a  protection  against  the  grinding  tyranny  of  employers 
who  would  degrade  the  worker  to  the  lowest  limits  of 
human  endurance  unless  this  claim  to  a  practical  joint- 
ownership  was  enforced. 


CREATION  OF  WEALTH  45 

Without  going  into  any  consideration  of  the  labor 
question  in  this  connection,  it  is  not  belittling  to  the 
work  of  labor,  which  is  so  absolutely  necessary  to 
point  out  that  the  larger  results  are  due  to  the  directing 
intelligence.  When  labor  is  employed  in  a  primitive 
way  there  is  a  wealth  production,  but  it  is  limited 
more  to  the  cruder  forms  of  materials,  giving  the 
smallest  returns  for  its  share  in  the  form  of  wages. 
The  productive  power  of  this  kind  of  labor  has  not  in- 
creased in  the  Eastern  countries,  for  example,  where 
the  routine  of  the  work  has  continued  unchanged  for 
centuries  and  the  crowding  of  the  population  tends 
to  decrease  the  earnings.  Unless  some  individuals  can 
devise  mechanical  appliances  or  more  effective  methods, 
these  conditions  will  continue  for  centuries  to  come. 
If  some  genius  could  find  a  way  for  doubling  the  pro- 
duction, it  would  mean  a  corresponding  creation  of 
wealth  which  would  benefit  the  consumers  of  the 
products  and  the  labor  employed  as  well. 

Take  an  invention  like  vulcanization  of  rubber,  for 
which  Charles  Goodyear  labored  through  years  of 
privation,  suffering  and  even  disgrace  before  he  suc- 
ceeded in  giving  a  creation  of  wealth  of  incalculable 
benefit  to  humanity.  What  would  the  world  do 
without  rubber  in  all  the  uses  as  we  have  it  now? 
Had  labor  any  share  whatever  in  this  creation  of  wealth, 
which,  by  the  way,  opened  up  a  new  demand  for  labor? 
What  sustained  Charles  Goodyear  through  all  his 
trials,  troubles  and  repeated  failures  but  the  greed 
for  gain  or  the  hope  of  reward  in  the  millions  of  profits 
which  he  foresaw  that  the  public  would  willingly  pay 
for  the  benefits  from  his  invention?  Would  any 


46  THE  GOSPEL  OF  GREED 

despotic  ruler  or  any  Socialistic  official  have  tolerated 
such  a  nonsensical  dreamer  as  he  appeared  to  be,  or 
have  allowed  him  to  continue  costly  experiments  after 
his  first  failures?  Who  would  select  him  out  of  mil- 
lions of  others  to  experiment  with  a  worthless  ma- 
terial and  allow  him  to  draw  his  regular  supplies  from 
the  common  store  without  working  in  the  ranks  with 
the  others? 

In  the  same  way  hundreds  of  others  might  be 
named  who  in  other  lines  were  great  creators  of  wealth 
by  their  inventions,  and  who  had  to  meet  the  fierce 
opposition  from  labor.  What  kind  of  reasoning  can 
it  be,  or  what  kind  of  justice  or  fairness,  to  claim  that 
these  men  who  have  given  so  much  by  their  brains  are 
entitled  to  nothing  in  return  but  the  fixed  allowance 
for  the  hours  they  labored? 

Then  there  is  the  utilization  of  wastes  for  new 
products.  A  few  might  be  mentioned:  like  cotton- 
seed products  from  cotton ;  by-products  from  slaughter- 
ing establishments,  of  more  value  than  the  meat; 
various  products  from  coal  tar  and  petroleum,  of  more 
value  than  the  principal  products;  and  for  other  in- 
dustries the  list  could  be  extended  to  fill  a  fair-sized 
volume.  What  can  labor  fairly  claim  for  all  these 
wealth  creations?  The  workers  employed  get  their 
full  share  of  benefit  from  all,  the  same  as  from  the  more 
important  inventions. 

But  scientific  Socialism  of  the  high-thinking  order 
still  insists  that  labor  is  the  creator  of  all  wealth,  and 
that  the  capitalistic  robbers  who  attempt  to  appropriate 
a  share  must  be  summarily  suppressed. 


OF  THI 

UNIVERSITY 

*  L I FO  R  N*X 


CHAPTER  VII. 

LABOR  AND  ITS  VALUE. 

Essential  for  Wealth  Production,  but  Worthless  and  a  Burden 
when  not  Employed — Different  Results  from  Same  Labor 
— Power  to  Destroy — Alleged  Superiority — The  Carnegie 
Illustration — Jollying  versus  the  Facts. 

Labor  conquers  all.  Labor  produces  all  wealth. 
The  laborer  is  worthy  of  his  hire.  Labor  is  ennobling 
and  idleness  is  degrading,  and  so  on  through  the  array 
of  proverbial  sayings.  But  there  is  one,  more  pointed 
and  true  than  all  the  others,  and  that  is:  Jollying 
labor  is  the  most  profitable  resource  for  demagogues 
when  votes  are  wanted. 

What  is  labor  and  how  must  it  be  considered  in 
any  scientific  analysis? 

Labor  is  the  action  of  human  beings  for  producing 
definite  results.  Broadly  speaking  it  must  include  all 
human  activity  and  could  also  be  extended  to  animal 
labor,  as  for  horses  which  furnish  power  for  transpor- 
tation or  for  other  details  of  industrial  operations.  As 
usually  employed  in  political  or  economic  discussion, 
labor  is  assumed  to  mean  physical  efforts  of  human 
beings  for  definite  results  aside  from  mere  recreation 
or  exercise. 

But  where  does  the  value  of  labor  come  in?  There 
is  the  power  or  potentiality  for  labor  in  every  normal 
human  being;  but  suppose  it  is  not  employed  or  does 
not  exert  itself?  Then,  evidently,  there  can  be  no 
product  or  no  value.  Instead  of  being  the  creator  of 

(47) 


48  THE  GOSPEL  OF  GREED 

all  wealth  or  any  wealth,  the  power  or  ability  to  labor, 
when  not  employed,  is  worthless.  In  fact,  it  is  worse 
than  worthless,  because  it  must  be  supported,  —  that 
is :  fed,  clothed  and  sheltered  in  some  way  by  the  labor 
that  is  employed  and  productive.  A  man  has  the 
ability  for  a  certain  amount  of  labor  per  day  and  can 
do  his  share  for  producing  a  certain  amount  of  wealth; 
but  if  from  any  cause,  as  voluntary  strike  or  enforced 
idleness,  he  does  not  do  the  work  on  a  given  day  he 
subtracts  just  so  much  from  the  common  wealth 
instead  of  adding  to  it. 

The  misery  of  hard  times  that  is  the  most  heart- 
rending is  the  despondency  of  able  bodied  men,  willing 
and  anxious  to  work,  but  who  must  accept  the  neces- 
saries of  existence  from  others  and  be  a  burden  instead 
of  a  support.  If  the  unemployed  could  be  eliminated 
in  some  way  for  the  time  being  or  laid  away  in  a  trance- 
like  condition  until  wanted,  how  much  hardship  and 
suffering  could  be  avoided.  The  blindness  to  this 
fact  of  the  unemployed-labor  burden  is  one  of  the 
greatest  blunders  of  the  trade-union  policies  for  re- 
stricting the  number  of  workers. 

Further  than  this,  labor  actually  employed  and 
exerted  to  the  limit  of  capacity  may  be  destructive, 
instead  of  creative  of  wealth.  Suppose  that  an  archi- 
tect makes  plans  for  a  building  and  employs  labor 
necessary  for  its  construction,  the  result  being  a  build- 
ing specially  adapted  for  the  use  intended,  so  that  it 
can  be  utilized  with  profit  as  a  factor  for  further  wealth 
production.  The  labor  in  that  case  was  certainly  an 
element,  and  an  absolutely  necessary  one,  for  creating 
the  wealth  represented  by  the  building.  But  suppose 


LABOR  AND  ITS   VALUE  49 

another  architect  designs  another  building  and  em- 
ploys the  same  identical  force  of  workers  for  its  con- 
struction, from  foreman  down  to  the  last  hod-carrier 
and  assistant  helper,  using  the  same  value  of  materials. 
The  first  building  is  exactly  what  is  wanted  for  better 
results  in  economic  working  and  is  paid  for  accordingly. 
The  second  building  is  found  to  be  generally  defective. 
The  foundations  are  insecure,  the  supporting  columns 
not  properly  placed,  the  window  openings  wrong,  the 
roof  wrongly  pitched  so  that  it  leaks  instead  of  draining 
the  water.  The  building,  in  short,  cannot  be  used 
and  is  worthless, —  representing  not  wealth  production, 
but  a  positive  waste  of  all  the  materials  and  cost  of 
labor  used  in  the  construction.  Who  is  responsible 
for  the  difference  in  the  results  of  a  handsome  profit 
and  a  big  loss?  It  cannot  be  labor,  because  the  same 
identical  labor  was  employed  in  both  buildings. 

Take  another  example  of  two  steamships  built  in 
the  same  shipyard  by  the  same  workmen  using  sub- 
stantially the  same  materials  but  with  different  plans, 
the  workmen  faithfuly  following  the  detailed  drawings 
in  each  case.  One  ship  will  be  serviceable  and  valuable 
while  the  other  will  be  so  faulty  in  the  plans  that  it  will 
scarcely  float,  and  be  otherwise  worthless.  Did  labor 
have  anything  to  do  with  this  difference  in  the  results? 

So  examples  might  be  multiplied  indefinitely  for 
bridges  and  structural  work  generally,  as  well  as  for 
all  machinery,  showing  faithful  work  with  different 
results.  The  same  is  true  in  all  lines  of  manufacturing 
where  wrong  orders  or  careless  neglect  of  instructions 
will  give  a  worthless  product,  while  an  attractive  de- 
sign properly  worked  out  in  the  product  brings  profit. 


50  THE  GOSPEL  OF  GREED 

Does  the  value  of  printed  matter  depend  on  the  labor 
of  type-setting  and  press  work,  or  on  the  ideas  set  forth 
by  the  writers?  So  in  every  branch  of  industry  there 
is  the  same  difference  in  results  due  to  the  brain  power 
in  the  directing. 

Then  there  is  the  well-known  fact  of  the  cost  of 
superintendents,  foremen,  inspectors,  time-keepers, 
etc.,  to  see  that  the  workers  do  not  waste  time  and 
materials,  or  turn  out  defective  products. 

Not  less  than  20  per  cent.,  on  average,  of  the  labor- 
cost  of  production  goes  for  this  supervising  and  watch- 
ing (to  prevent  losses  from  careless  indifference  of  some 
who  will  not  give  the  service  as  agreed  upon  for  the 
wages)  which  the  majority  of  the  workers  honestly  and 
faithfully  do. 

Then  take  any  kind  of  a  manufacturing  establish- 
ment or  any  kind  of  a  business  or  mercantile  concern : 
one  man  as  manager  will  build  up  from  a  small  be- 
ginning to  a  great  establishment  with  a  splendid  system, 
and  the  results  are  good  profits  amounting  to  a  big 
fortune.  This  man  either  dies  or  sells  out,  and  a  son, 
son-in-law  or  relative  or  a  new  purchaser  takes  control 
with  the  same  force  of  employes  down  to  the  last 
office  boy.  At  the  end  of  one  or  two  years  the  business 
is  wrecked  and  the  assignee  is  closing  it  out.  It  is  a 
matter  of  common  knowledge  that  thousands  of  such 
cases  can  be  cited  in  every  branch  of  industry  (as  well 
as  the  reverse:  of  the  right  man  taking  a  losing  busi- 
ness and  building  it  up  for  profit). 

Every  day  brings  its  record  of  business  failures  as 
well  as  of  new  concerns  starting,  and  the  number  of 
business  houses  that  can  show  a  continuous  existence 


LABOR  AND  ITS   VALUE  51 

of  twenty-five  years  without  failure  is  small  enough 
to  make  such  a  record  exceptional.  If  labor  has  any 
claim  to  the  profits  of  success  will  it  agree  to  con- 
tribute to  make  good  the  losses  of  failures? 

Every  reasoning  human  being  understands  from 
his  own  observation  how  results  come  from  manage- 
ment and  not  from  the  labor  employed,  and  that  labor 
is  utterly  helpless  without  intelligent  direction.  And 
yet  such  is  the  perversity  of  the  human  element  that 
there  are  human  beings,  and  a  goodly  number  of  them, 
who  in  the  face  of  all  this  common  knowledge  and 
universal  experience  will  shut  their  eyes,  plug  their 
ears,  and  solemnly  argue  for  the  Karl  Marx  doctrine 
that  labor  produces  all  wealth,  and  that  the  division 
should  be  in  accordance  with  the  number  of  hours 
which  each  worker  was  engaged  in  manual  labor. 
The  ranting  of  the  labor  champions  on  this  line  are 
taken  as  gospel  and  as  a  basis  for  demanding  more 
"rights." 

It  is  a  curious  feature  also  that  all  the  economic 
authorities,  with  a  few  exceptions,  discuss  wealth  pro- 
duction as  if  it  was  the  sole  work  of  labor,  and  assuming 
an  absolutely  automatic  action  for  the  great  industrial 
establishments.  It  is  assumed  without  explanation 
that  in  some  way  labor  will  go  on  producing,  no  matter 
what  happens  to  the  heads  of  the  concerns  or  how 
profits  may  be  affected.  Every  practical  man  knows 
that  with  no  profit  the  shop  must  shut  up,  and  yet  labor 
leaders  ignore  all  conditions  as  to  profit,  and  argue  that 
wages  must  be  increased,  and  that  the  workers  as  the 
real  producers  must  be  allowed  to  dictate  certain 
terms  as  to  the  management  of  the  business. 


52  THE  GOSPEL  OF  GREED 

So  far  as  modern  conditions  are  concerned  no  one 
who  can  reason  will  attempt  to  dispute  the  truism  that 
success  in  any  industrial  venture  must  depend  on 
the  intelligence  of  the  management,  and  never  on  the 
labor  employed.  The  only  difference  that  can  be  at- 
tributed to  labor  is  in  the  fact  that  efficient  workmen 
who  follow  instructions  will  give  better  results,  while 
careless  workmen  will  cause  serious  losses  or  destruc- 
tion. Occasionally,  also,  a  bright  worker  will  notice  a 
mistake  and  suggest  an  improvement,  but  this  simply 
shows  that  he  is  not  an  average  laborer. 

What  has  labor  as  labor  ever  accomplished  for  prog- 
ress from  the  beginning  of  the  world?  Did  any  body 
of  workers  at  any  time  or  place  ever  come  together 
and  insist  on  improvements?  On  the  contrary,  was 
any  invention  or  improvement  (with  some  exceptions 
in  recent  years )  ever  introduced  without  the  determined 
hostility  of  labor,  as  shown  by  violence,  destruction 
and  murderous  assaults? 

But  it  will  still  be  argued,  it  is  certainly  true  that 
wealth  cannot  be  produced  without  labor,  and  so  why 
not  change  the  wording  to  say  that  labor  produces 
the  wealth? 

There  is  much  more  than  a  change  in  the  wording, 
because  the  same  can  be  said  of  the  materials  used. 
Wealth  cannot  be  produced  without  the  materials 
and  forces  supplied  by  nature,  but  it  would  be  mani- 
festly absurd  to  say  that  the  materials  produced  the 
wealth.  The  exact  truth  is  that  wealth  cannot  be 
produced  without  labor  and  materials,  and  that  with 
these  must  be  combined  the  third  factor  of  intelligent 
direction.  Labor  and  materials  are  both  inert  in  the 


LABOR  AND  ITS   VALUE  53 

sense  that  they  cannot  act  for  themselves.  The  vital 
spark,  or  the  creative  force  which  combines  labor  and 
materials  for  a  new  product  that  did  not  exist  before, 
is  the  directing  intelligence  which  arranges  the  details 
of  the  work  for  certain  definite  results. 

In  primitive  conditions  human  beings  combine 
within  themselves  the  labor  and  the  differing  degrees 
of  directing  intelligence,  enabling  them  to  supply  their 
wants;  but  with  any  kind  of  association  for  co-operative 
effort  the  best  intelligence  must  take  control  for  direct- 
ing, while  the  others  must  follow  the  instructions. 
The  modern  demand  for  labor  calls  for  high  degrees  of 
intelligence  and  technical  skill  for  the  employes  in 
many  lines,  and  this  intelligence,  of  course,  contributes 
to  the  results.  Employes  are  often  found  who  are 
superior  mentally  to  the  employers;  but,  none  the  less, 
the  employer  who  takes  the  risks  with  his  capital  must 
have  the  control  and  act  as  the  directing  intelligence 
for  the  whole,  because  he  alone  must  decide  as  to  just 
what  features  are  wanted  in  the  product,  and  the  suc- 
cess or  failure  of  the  whole  must  depend  on  his  judg- 
ment. 

If  it  was  a  question  of  manual  labor,  that  is:  physical 
capacity  for  working,  the  most  productive  regions  of 
the  earth  would  be  where  the  savage  tribes  are  found 
with  the  power  of  their  splendid  physical  development. 
Or  if  it  was  a  question  of  numbers,  the  wealth  produc- 
tion of  China  or  India  should  be  far  in  excess  of  any- 
thing that  the  Western  civilization  can  show. 

Some  of  the  authorities  (?)  undertake  to  answer  or 
rather  explain  this  obvious  difference  in  production 
by  arguing  that  the  workers  of  Europe  and  America, 


54  THE  GOSPEL  OF  GREED 

if  not  physically  stronger,  are  superior  in  skill.  We 
are  told  that  the  workers  of  Europe  are  superior  to 
those  of  the  Orient  and  are  entitled  to  higher  wages 
accordingly.  Then,  in  turn,  it  is  said  that  the  workers 
of  the  United  States  are  so  much  superior  to  those  of 
Europe  that  they  fairly  earn  the  wages  they  receive, 
which  are  practically  double  the  European  standard. 

But  what  a  pitifully  inadequate  explanation  this  is ! 
If  workers  in  one  locality  are  superior  to  those  in 
another,  how  or  why  did  they  become  so?  It  could 
not  be  from  any  natural  law  of  evolution,  because  a 
natural  law  must  work  exactly  the  same  in  Asia, 
Africa,  Europe  or  America.  It  needs  only  a  glimmering 
of  common  sense  to  understand  that  if  one  set  of 
workers  are  superior  to  another  it  is  because  they  have 
been  taught  or  instructed,  and  work  under  more 
intelligent  direction  or  with  more  mechanical  assistance. 
A  boy  at  the  lever  of  a  hoisting  engine,  with  its  cables 
and  pulley  blocks,  can  lift  and  handle  weights  that 
a  hundred  physically  perfect  giants  could  not  move. 
Is  that  evidence  of  the  boy's  superiority  or  of  the 
advantage  of  the  appliances  he  uses? 

If  anything  further  was  needed  to  prove  the  ab- 
surdity of  the  notion  that  increased  production  is  due 
to  the  superiority  of  the  workers,  just  consider  what 
happens  when  the  alleged  superior  American  workman 
goes  back  to  Europe.  Does  his  assumed  superiority 
enable  him  to  command  the  American  scale  of  wages 
or  not?  This  applies  to  common  workers,  of  course, 
and  not  to  special  instructors  who  sometimes  go  under 
contract.  So  if  the  European  goes  to  China  and  works 
according  to  the  Chinese  methods,  can  he  show  the 


LABOR   AND  ITS   VALUE 


assumed  superiority  in  the  increased  value  of  his  pro- 
duction or  not?  How  could  it  be  possible  for  a  man, 
by  reason  of  a  short  voyage  westward,  to  acquire  a 
superiority  enabling  him  to  earn  double  wages,  and 
by  a  return  trip  lose  all  the  acquired  skill  so  that  he 
can  earn  only  the  lower  wages? 

Of  course,  the  truth  that  all  can  see  who  are  not 
willfully  blind  is  that  the  difference  in  production  is 
due  to  the  difference  in  the  methods,  systems  or  me- 
chanical appliances  in  use,  and  not,  beyond  a  slight 
degree  for  individuals,  to  any  possible  ability  or  merit 
of  the  workers  collectively. 

Mr.  Carnegie  is  credited  with  saying  that  a  success- 
ful business  was  like  a  three-legged  stool,  standing  on 
labor,  capital  and  brains;  or  brains,  labor  and  capital; 
or  capital,  brains  and  labor;  that  neither  is  first,  and 
all  are  inter-dependent. 

While  this  is  true  enough  from  what  might  be  called 
the  hind-sight  view  of  the  results,  yet  it  strangely 
overlooks  the  fact  that  it  was  the  brain  factor  that 
planned  the  stool  in  the  first  place,  and  finding  the 
other  two  legs  lying  inert  and  unused,  brought  them 
together  to  make  the  workable  stool.  If  it  had  not 
been  for  Mr.  Carnegie's  brain  there  could  have  been 
no  Carnegie  establishment,  and  the  capital  and  labor 
factors  would  have  waited  for  some  other  brain.  If, 
further,  at  any  time  after  the  combination  had  been 
made  and  worked  successfully,  Mr.  Carnegie  had 
decided  to  retire  and  close  the  establishment,  capital 
and  labor  could  do  nothing  to  prevent.  Finally,  if 
Mr.  Carnegie  again  changed  his  mind  and  decided  to 
open  another  establishment  in  another  remote  locality, 


56  THE  GOSPEL  OF  GREED 

he  could  easily  find  other  capital  and  labor  legs  suit- 
able for  his  purpose  and  continue  his  wealth  produc- 
tion. 

All  the  capital  and  all  the  labor  of  the  world  cannot 
combine  for  wealth  production  without  the  directing 
brain  power.  Hence  the  absurdity  of  the  claims  for 
capital  and  labor,  either  or  both,  as  producers  of 
wealth.  The  one  creative  power  and  vital  force  for 
wealth  production  must  always  and  everywhere  be  the 
brain  intelligence  which  makes  use  of  the  necessary 
factors  of  capital  and  labor  in  the  same  way  that  it 
uses  the  other  necessary  factor  of  the  natural  materials, 
from  which  the  wealth  is  created  by  the  increased 
value  given  to  the  product. 

Brain  power  and  capital  are  so  closely  allied  that 
they  are  usually  included  in  the  term  capital  in  the 
questions  at  issue  with  labor,  which  is  correct  enough 
for  the  purpose.  It  may  be  courteous  or  compli- 
mentary on  the  part  of  Mr.  Carnegie  to  put  labor  on 
an  equality,  but  the  facts  cannot  be  changed  or  ex- 
plained away  or  overcome.  Mr.  Carnegie  or  the  brain 
power  must  be  interested  first,  before  there  can  be 
any  call  for  the  labor  factor.  Then  if  Mr.  Carnegie  is 
not  satisfied  with  the  results,  labor  must  look  elsewhere 
for  other  legs  of  other  stools. 

The  power  of  capital  and  labor  is  simply  negative 
and  destructive.  They  can  refuse  to  co-operate  or 
can  stop  working,  thereby  wrecking  the  whole  combi- 
nation. 

Mr.  Carnegie  admits  his  obligations  to  employes 
who  helped  him  in  his  enterprises,  but  he  really  refers 
to  the  salaried  men  who  had  the  brain  power  for 


LABOR  AND  ITS   VALUE  57 

originating  or  directing  with  the  result  of  more  wealth 
creation.  This  class  is  clearly  distinguished  from 
the  labor  which  organizes  itself  into  unions  and  insists 
that  the  salaried  brain  power  is  part  of  the  capitalistic 
scheme  for  robbing  and  oppressing  labor. 

The  success  of  the  Carnegie  enterprise,  by  the  way, 
was  mostly  from  the  introduction  of  the  Bessemer 
process  of  making  steel  which  other  concerns  rejected. 
The  value  of  this  process  to  the  world  as  proved  by 
the  results  is  beyond  calculation.  In  England,  with 
less  demagogism  and  more  common  sense,  the  results 
were  acknowledged  and  were  rewarded  with  civic 
honors  in  the  titles  conferred  on  Sir  Henry  Bessemer, 
the  inventor,  and  Sir  William  Armstrong,  the  promoter. 
In  the  United  States  nothing  is  credited  for  the  results 
in  larger  volume  from  the  work  of  the  Carnegie  con- 
cern, but  the  fortune  from  the  profits  is  in  evidence, 
and  the  popular  honor  for  Mr.  Carnegie  is  the  limit 
of  vituperative  ephithets  for  his  alleged  robberies. 

What  possible  good  can  come  from  ignoring  the 
facts  and  pretending  that  labor  is  the  producer  of 
wealth  or  even  an  equal  factor  for  the  production? 
Jollying  may  be  more  or  less  pleasing,  but  does  it  ever 
give  real  benefit? 

Jollying  labor  leads  to  exaggerated  notions  oi 
importance  for  the  leaders,  and  unreasonable  demands 
which  amount  to  an  exercise  of  its  power  for  destruc- 
tion by  wrecking  the  production.  But  how,  from  any 
point  of  view,  can  this  be  considered  as  a  benefit  for 
labor? 

There  are  some  human  beings  with  a  pride  in  their 
reasoning  powers,  who,  on  seeing  a  railroad  train  for 


58  THE  GOSPEL  OF  GREED 

the  first  time,  would  argue  learnedly  that  according 
to  all  principles  of  mechanical  forces  it  would  be  im- 
possible for  the  little  locomotive  at  the  head  to  pull 
the  long  line  of  big  cars.  So  they  would  conclude  that 
the  cars  were  pushing  the  engine.  In  the  same  way 
it  is  assumed  by  these  wise  thinkers  that :  where  thou- 
sands of  workers  are  engaged  in  an  industrial  establish- 
ment, they  must  be  the  real  active  power  which  pro- 
duces the  results  in  the  product,  while  the  manager — 
sitting  apparently  idle  in  his  little  office — could  not  by 
any  logical  reasoning  be  considered  as  the  vital  moving 
force  of  the  whole. 

Dash  cold  water  into  the  little  firebox  of  the  little 
locomotive  and  how  far  will  the  train  move? 

Suppose  the  manager  of  the  industrial  establish- 
ment should  walk  out  and  leave  the  workers  to  run  the 
place  on  their  own  responsibility  and  according  to 
their  own  notions,  what  would  they  accomplish  and 
how  long  would  it  run? 

There  are  few  laborers  so  lacking  in  intelligence 
as  not  to  have  a  pretty  clear  understanding  of  the 
value  of  capital  and  management.  They  know  as 
individuals  that  the  motive  for  building  the  establish- 
ment and  keeping  it  running  is  the  chance  for  profits 
or  greed  for  gain.  More  profit,  like  more  fire  under 
the  boiler  of  the  locomotive,  means  more  speeding;  or, 
in  other  words,  more  employment  and  more  wages; 
while  less  profit  means  less  employment  and  wage 
reductions.  And  yet  these  same  workers,  knowing 
all  this,  will  whoop  and  howl  collectively  for  the  dema- 
gogues and  labor-union  leaders  who  promise  to  smash 
the  greedy  employers  and  wipe  out  their  profits. 


LABOR  AND  ITS   VALUE  59 

Then  when  the  discharges  and  the  shut  downs  come 
what  can  labor  do  for  itself,  with  all  its  assumed  power, 
but  rally  at  the  charitable  soup  kitchens. 

Another  delusion  and  a  queer  logical  monstrosity 
is  the  idea  of  the  labor  unions  concerning  the  demand 
for  labor,  which  is  assumed  to  be  fixed  and  constant. 
The  labor-union  policy  accordingly  aims  to  limit  the 
number  of  workers  and  also  to  limit  the  amount  of 
work  to  be  done  by  the  individuals.  If  there  is  a 
certain  amount  to  be  done,  of  course  this  policy  would 
tend  to  increase  the  wages.  Every  individual  worker 
knows  that  the  demand  for  labor  is  never  fixed  or 
constant,  and  that  it  is  always  changing.  In  times 
of  prosperity,  when  the  most  labor  is  employed,  wages 
are  the  highest,  while  hard  times  with  less  employ- 
ment certainly  mean  lower  wages.  If  there  was  any 
truth  in  the  labor-union  theory  this  would  practically 
be  reversed. 

Every  worker  employed  makes  a  demand  for  the 
products  of  other  workers,  while  every  worker  idle 
is  a  burden.  Limiting  the  number  of  workers  or  the 
amount  of  work  gives  less  value  in  the  product,  which 
means  higher  cost,  and  must  result  in  less  sales,  less 
demand  for  labor  and  lower  wages. 

Hundreds  of  examples  could  be  cited  where  im- 
provements, designed  for  lowering  cost  and  larger  sales 
calling  for  more  labor,  have  been  obstructed  or  defeated 
by  the  obstinancy  of  labor  in  demanding  more  or 
restricting  the  output.  With  all  the  inventions  and 
improved  methods,  the  building  industry,  for  example, 
has  been  unable  to  show  corresponding  results  in 
reduced  cost.  So  building  work  is  restricted,  less 


60  THE  GOSPEL  OF  GREED 

labor  is  employed  with  less  earnings,  and  no  benefit 
to  the  public,  who  must  pay  higher  rents  for  the 
antiquated  structures  that  would  naturally  be  replaced 
by  more  modern  buildings  with  all  the  improvements 
at  lower  cost. 

So  it  is  that  labor  allows  itself  to  be  humbugged, 
and  grabbing  for  temporary  gains  loses  all  the  larger 
benefits.  Always  fighting  progress  and  stubbornly 
opposing  measures  for  its  own  benefit. 

These  are  the  facts  that  no  amount  of  "jollying" 
can  change,  and  this  is  the  problem  of  the  unemployed. 


CHAPTER  VIII. 

HOW  PRODUCTION   IS   INCREASED. 

The  Directing  Power  of  Intelligence — How  the  Values  are 
Divided — Larger  Share  for  Labor  and  Greater  Benefits 
for  Humanity. 

The  earth  as  well  as  the  greater  universe  of  which 
it  is  a  part  give  proof  of  a  Grand,  Infinitely  Wise  In- 
telligence as  a  Creator.  A  chance  development  of  the 
whole  from  an  aggregation  of  the  constituent  atoms 
would  be  past  all  imagining.  In  a  smaller  way  with 
earthly  affairs  the  markings  on  rocks,  the  special 
shapes  given  to  stones  or  the  clay  formed  into  bricks, 
or  pottery,  give  positive  proof  of  the  work  of  human 
beings  directed  by  human  intelligence.  Whether  the 
soul  or  the  human  intelligence  is  considered  as  part 
of  the  Great  First  Cause  or  only  a  faint  reflection  of  the 
same,  there  is  in  a  limited  way  something  of  the  same 
creative  power  in  transforming  materials  for  the  new 
productions  designed  for  use  or  comfort.  It  would 
be  as  reasonable  to  imagine  the  universe  assuming 
shape  and  order  by  chance  as  to  argue  that  the  changes 
known  as  creation  of  wealth  could  possibly  come  from 
physical  effort  without  the  intelligence  for  planning 
and  directing. 

In  primitive  operations,  as  previously  noted,  the 
intelligence  is  in  the  brain  of  the  worker  himself,  and 
this  intelligence  may  be  developed  up  to  the  highest 
grade  of  skilled  mechanic  or  artistic  genius,  with  corre- 
spondingly valuable  results  in  the  wealth  produced. 

(61) 


62  THE  GOSPEL  OF  GREED 

But  with  the  first  step  in  the  direction  of  co-operation 
there  must  be  a  directing  brain  which  will  assign  a 
place  and  a  portion  of  the  work  to  each  of  the  other 
workers.  The  progress  of  civilization  means  develop- 
ment of  this  co-operation  for  larger  results,  and  such 
co-operation  is  impossible  without  the  directing  in- 
telligence to  make  it  effective.  In  all  questions  con- 
cerning modern  industrial  conditions,  therefore,  the 
directing  intelligence  or  management  must  be  con- 
sidered not  only  as  an  essential  factor,  but  as  the  real 
moving  power.  By  this  management,  with  the  co- 
operation, an  additional  wealth  is  created  far  in  excess 
of  the  possible  total  from  the  efforts  of  the  same  in- 
dividuals working  independently. 

Take,  for  example,  the  work  of  one  hundred  shoe- 
makers each  capable  of  making,  say,  one  pair  of  shoes 
a  day  and  no  more.  They  will  each  pay  $2  for  ma- 
terials and  sell  the  finished  shoes  for  $3,  leaving  $1 
to  pay  for  their  labor.  Now,  along  comes  an  individual 
who  puts  up  a  factory  building,  equips  it  with  ma- 
chinery, and  induces  the  hundred  shoemakers  to  work 
for  him  in  the  factory  under  his  explicit  directions. 
As  the  result  he  turns  out  500  pairs  of  shoes  a  day, 
selling  at  $1,500.  Here  is  a  difference  of  400  pairs  of 
shoes  and  $1,200  in  value  with  the  same  labor.  Who 
is  responsible  for  this  difference  or  who  created  the 
extra  value?  Who  is  fairly  and  justly  entitled  to  the 
difference,  and  has  the  labor  any  shadow  of  a  claim 
to  it?  The  shoemakers  of  their  own  accord  could 
never  get  together  for  such  a  result,  and  they  were 
satisfied  with  their  original  earnings.  If  the  shoe 
factory  thus  organized  was  the  first  of  its  kind,  the 


HOW  WEALTH  IS  CREATED  63 

individual  could  continue  for  some  time  to  sell  his 
product  at  the  old  prices  and  would  soon  accumulate 
a  big  fortune  from  his  profits.  Assuming  that  such 
was  the  case,  what  other  human  being  could  claim 
that  he  was  injured  or  robbed?  The  workers  would 
have  the  same  earnings,  the  buyers  would  have  the 
shoes  at  the  same  prices,  and  the  individual  who  made 
the  difference  possible  would  have  only  the  extra 
value  he  created. 

As  a  matter  of  fact  the  result  works  out  somewhat 
differently.  The  employer  with  his  factory  system 
and  larger  production  begins  by  lowering  the  selling 
price  to,  say,  $2.75  per  pair  for  the  shoes  instead  of 
$3,  and  next  with  the  increased  demand  for  workers, 
finds  it  necessary  to  pay  the  shoemakers  $1.25  a  day 
instead  of  $1,  so  that  he  gets  only  half  of  the  value  he 
created.  The  actual  changes  in  the  shoemaking  in- 
dustry were,  of  course,  more  gradual  than  indicated 
in  the  foregoing,  and  as  employers  or  managers  intro- 
duced better  equipment  and  better  mechanical  appli- 
ances the  production  was  steadly  increased  for  the 
same  number  of  workers.  The  result  was  reductions 
in  the  selling  prices  at  one  end,  and  increases  in  wages 
at  the  other  until  the  margin  for  profit  was  reduced 
practically  to  the  normal  rate  of  interest  for  the  capital 
invested.  A  profit  of  five  cents  a  pair  on  the  output 
of  a  modern  shoe  factory  is  considered  a  very  good 
showing  while  the  average  is  under  this  figure.  In 
the  meantime  there  is  the  constant  study  for  further 
improvements  with  better  results,  each  concern  striving 
for  some  feature  that  will  tend  to  increase  the  sales 
and  bring  more  profits,  the  larger  benefits  always 
going  to  the  public. 


64  THE  GOSPEL  OF  GREED 

In  place  of  shoes  and  shoe  factories  in  the  foregoing 
substitute  any  other  industrial  product  and  sub- 
stantially the  same  results  are  shown.  The  inventors 
or  the  individuals  who  can  devise  new  methods  or 
appliances  for  increasing  the  production  with  the 
same  labor  are  the  wealth  creators,  and  at  the  outset 
can  get  extra  profits.  But  they  soon  have  plenty  of 
imitators,  and  must  give  up  a  larger  share  to  the  buying 
public  in  lower  prices,  and  also  give  up  more  to  labor 
which,  whether  reasonable  or  otherwise,  demands  and 
gets  a  larger  share  of  the  value  of  the  product.  All 
industrial  progress  must  come  in  just  this  way.  It  is 
always  the  individuals  with  new  ideas  which,  by  the 
way,  are  almost  invariably  opposed  by  the  workers. 

It  is  needless  to  multiply  the  examples  by  citing 
the  developments  in  all  the  different  lines  of  industry, 
showing  how  the  forces  of  nature  and  mechanical 
appliances  have  been  used  for  the  creation  of  wealth 
in  the  greatly  increased  output  or  production  by  the 
same  labor.  Just  consider  for  a  moment  some  of  the 
wealth  creations  of  the  past  hundred  years,  beginning 
with  the  steam  engine,  then  the  power  loom,  the  sew- 
ing machine,  the  cotton  gin,  railroads,  steamships,  the 
vulcanization  of  rubber,  agricultural  machinery,  shoe 
machinery,  steel  production,  telegraph,  telephone, 
electric  motors  and  electrical  development  generally, 
and  so  on  through  the  thousands  of  minor  inventions 
which  have  given  such  wonderful  results.  All  these 
developments  came  from  individuals  who  studied, 
toiled  and  suffered  in  hopes  of  reward,  or,  in  other 
words,  greed  for  gain.  Some  were  fairly  fortunate 
with  riches  and  honors  while  others  had  nothing  but 


HOW  PRODUCTION  IS  INCREASED  65 

disappointment  and  blasted  hopes.  But  taken  in- 
dividually or  collectively,  did  any  or  all  ever  receive 
a  thousandth  part  of  the  grand  total  of  benefit  they 
gave  to  humanity  by  their  inventions? 

The  reformers,  moralists  and  high  thinkers  gener- 
ally can  easily  see  and  understand  the  fortunes  that 
are  accumulated  by  the  few  inventors  or  leaders  who 
win  notable  success  by  offering  better  values  or  better 
service  which  attracts  more  buyers  and  so  gets  the 
larger  results.  What  they  do  not  or  will  not  see  is 
that  the  fortunes  are  only  very  small  fractions  of  the 
extra  values  given  and  distributed  to  the  public  for 
long  years  after  any  exclusive  control  of  the  inventions 
can  be  claimed.  With  eyes  that  see  not  and  ears  that 
hear  not,  they  parrot  off  the  old-time  stock  falsehood 
that  the  rich  are  getting  richer  and  the  poor  poorer. 
Where  would  the  big  fortunes  come  from  if  the  mass 
of  the  people  were  not  in  a  condition  to  buy?  The 
creation  of  wealth  means  more  to  divide;  and,  hence, 
in  every  instance  there  is  the  increased  production 
with  lower  cost  which  means  lower  prices  for  the  pro- 
ducts and  higher  wages  with  more  employment  for 
the  workers. 

The  inventors,  of  course,  are  creators  of  wealth  as 
individuals;  that  is  to  say:  they  present  the  ideas;  but 
unless  the  ideas  are  adopted  they  are  as  worthless  as 
labor  when  unemployed.  There  must  be  brains  to 
realize  the  possibilities  from  the  inventions  and  to  put 
them  in  shape  for  offering  to  the  public  who  will  ac- 
cept or  reject  the  same  as  they  see  fit.  Then,  aside 
from  the  inventions  which  are  of  special  value,  there 
are  the  improved  methods  of  working,  the  minor 


66  THE  GOSPEL  OF  GREED 

economics,  the  utilization  of  wastes  or  by-products, 
all  of  which  are  in  effect  added  values  and  as  such  are 
wealth  creations.  In  the  line  of  economics  there  are 
the  methods  of  the  much  abused  trusts  or  big  corpora- 
tions which,  when  properly  managed,  get  good  results. 

The  reformers,  with  their  notions  of  arbitrary 
power  for  enforcing  their  theories,  assume  at  once  that 
the  trusts  having  the  power  will  act  as  extortionate 
monopolies,  but  here  again  it  is  a  question  of  pro- 
portion. The  individual  who  starts  in  business  with 
a  small  capital  is  commended  if  he  can  double  the  same 
within  a  year.  He  would  hardly  be  considered  a  suc- 
cess if  he  did  not  do  much  better  than  this  for  the 
succeeding  years.  But  doubling  his  capital  means 
100  per  cent  profit  which  must  come  from  the  buying 
public,  mostly,  and  to  some  extent,  possibly,  from 
the  labor  employed.  The  total,  being  only  a  few 
thousand  dollars,  does  not  call  for  special  notice. 
But  if  ten  or  a  hundred  of  the  small  concerns  combine 
into  an  organization  that  will  aggregate  a  capital  of 
millions  what  chance  would  there  be  for  doubling  the 
business  in  one  year?  What  trust  would  dare  to 
announce  prices  giving  a  profit  of  100  per  cent? 

Some  recent  dividends  of  big  corporations  like  the 
Standard  Oil,  for  example,  figuring  well  up  in  millions, 
have  been  wildly  denounced  as  evidence  of  wholesale 
robbery  of  the  consumers,  and  yet  it  is  safe  to  say  that 
as  a  percentage  on  the  capital  invested  or  in  use  these 
big  millions  would  be  less  than  one-tenth  as  much 
as  Rockefeller  and  others  cleared  yearly  with  their 
little  refineries  in  the  early  days  of  the  oil  business. 

There  can  be  no  question  as  to  the  fact  that  the 


HOW  PRODUCTION  IS  INCREASED  67 

principle  of  co-operation  and  intelligent  direction  as 
typified  in  the  big  factory  establishments  has  been  a 
leading  factor  in  the  wealth  creation  which  has  given  a 
general  prosperity  in  recent  years  in  this  country 
with  a  distribution,  as  evidenced  by  the  consuming 
ability  of  the  mass  of  the  people  in  their  buying,  such 
as  was  never  before  known  in  all  human  history. 
Allowing  for  any  reasonable  degree  of  the  alleged  ex- 
tortions or  criminality  of  the  big  trust  corporations, 
there  remains  the  fact  that  they  have  been  obliged 
to  concede  a  good  deal  to  the  general  public  in  the  re- 
duced margins  of  profits  for  sales,  and  the  increase  in 
wages  for  the  workers. 

It  is  puerile  begging  the  question  to  argue  that 
even  better  results  might  have  come  if  there  had  been 
no  trust  organizations  or  big  corporations.  Such  a 
supposition  is  directly  opposed  to  the  facts,  because 
with  all  the  intense  energy  of  previous  competition 
the  results  did  not  appear.  If,  as  must  be  admitted, 
there  is  a  possibility  of  economy  in  production  by 
reason  of  the  combinations,  then,  in  so  far  as  these 
economies  are  worked  out,  there  is  a  positive  creation 
of  wealth  which  sooner  or  later  must  appear  as  a 
benefit  to  the  public.  If,  as  is  so  often  argued  as  a 
crushing  argument  against  the  big  concerns,  young 
men  have  no  chance  to  start  in  business  in  a  small  way 
as  they  did  in  former  years,  what  does  this  really  mean 
if  not  that  the  margins  for  profit  are  so  reduced  that 
the  young  men  at  present  cannot  double  their  busi- 
ness every  year,  and  so  cannot  show  the  old  success  in 
building  up?  Will  the  great  mass  of  the  buying 
public  consent  to  go  back  to  the  old-time  basis  of  100 


THE  GOSPEL  OF  GREED 


per  cent  profits  in  order  to  give  the  young  men  a 
chance,  or  will  they  continue  to  patronize  the  big  con- 
cerns for  their  own  advantage  in  the  reduced  prices, 
with  the  young  men  as  department  managers  instead 
of  proprietors? 

In  all  the  denouncing  and  demanding  for  the  sup- 
pression of  the  capitalistic  robbers  there  is  the  assump- 
tion that  big  profits  are  being  taken  from  the  workers, 
and  that  these  profits  are  always  in  evidence  being 
part  of  the  system  which  socialism  would  destroy. 
Profits  are  part  of  the  system  certainly,  and  are  the 
incentive  for  better  results.  But  there  are  profits 
and  profits,  and  the  very  important  business  problem, 
as  previously  suggested,  is  how  to  get  them. 

It  is  assumed  by  the  class  of  critics  who  never  hired 
a  servant  girl  or  never  sold  a  pint  of  peanuts,  and  are, 
therefore,  cock-sure  authorities  on  business  matters, 
that  the  profits  must  be  robbery.  The  fact  that  a 
few  concerns  with  comfortable  fortunes  can  be  pointed 
out  is  proof  enough  that  all  engaged  in  the  same 
line  are  getting  the  same  profits,  and  so  the  aggregate 
robbery  is  figured  up  to  horrifying  totals. 

The  ignorance  or  dishonesty  or  both,  in  this  kind 
of  arguing,  is  making  it  appear  that  profits  are  uniform 
for  all.  Common  sense  understands  that  with  progress 
in  any  line  of  industry  there  must  be  varying  profits, 
and  that  extra  profits  for  some  must  mean  losses  for 
others.  The  more  progressive  firms  study  for  im- 
provements and  are  the  leaders  with  new  ideas  of 
lowering  cost,  or,  in  other  words,  creating  more  wealth. 
Such  concerns  with  lower  prices  or  better  service  get 
the  increased  business  and  the  big  profits  as  their 


HOW  PRODUCTION  IS  INCREASED  69 

reward.  Other  concerns  follow  along  as  well  as  they 
can  without  the  improvements,  and  are  forced  to  meet 
the  lower  prices  with  a  loss  of  some  of  the  former 
profits.  At  the  end  of  the  line  are  the  failures,  dropping 
out  because  with  their  old  methods  they  must  sell  at  a 
loss.  The  average  for  profit,  counting  the  failures, 
will  be  found  well  down  toward  the  zero  line,  and  for 
those  who  continue  in  business  it  will  not  be  much,  if 
any,  above  the  normal  interest-rate  for  capital  in- 
vested. This  is  why  the  benefits  from  improvement 
always  go  mostly  to  the  public,  and  the  big  profits 
of  the  leaders,  while  they  last,  must  be  a  small  per- 
centage measure  of  the  continuing  benefits  given 
when  the  improvements  are  generally  adopted. 

Again  it  may  be  asked:  if  labor  claims  a  larger  share 
in  the  success  of  the  leaders  will  it  be  willing  to  work 
for  lower  wages  for  the  non-progressive  concerns  whose 
profits  are  on  the  wrong  side  of  the  zero  line? 

Government  control,  according  to  any  kind  of  a 
socialistic  conception,  would  establish  a  dead  level  of 
uniformity  and  effectually  bar  all  progress,  because 
if  one  official  introduced  changes  for  the  better  there 
would  at  once  be  profits,  and  he  would  be  condemned 
as  a  renegade  from  the  socialistic  faith. 

Take  just  one  example  of  this  continuing  industrial 
progress.  In  1800  the  weaver  could  buy  ten  yards  of 
cloth  with  his  week's  wages.  In  1900  he  could  buy 
150  yards,  and  work  thirty  hours  less  per  week. 

Just  think  of  the  enormous  change  involved  in  this 
one  item  for  both — the  public  needing  the  cloth  and 
the  workers  producing  the  same.  The  value  of  this 
wealth  creation  would  total  up  to  an  astonishing 


70  THE  GOSPEL  OF  GREED 

array  of  figures.  Are  not  the  individuals  who  from 
first  to  last  introduced  the  improvements  in  me- 
chanical appliances  and  co-operative  or  combination 
management  clearly  entitled  to  recognition  and  an 
insignificant  fractional  part  of  the  enormous  benefits 
they  gave  to  humanity?  Would  any  human  being 
on  earth  today  favor  doing  away  with  all  this  progress 
and  going  back  to  the  hand-loom  cloth-weaving,  with 
ten  yards  of  cloth  for  a  week's  wages? 

In  the  hundred  years  of  progress  there  were  thou- 
sands of  individuals  studying,  working  and  experi- 
menting to  devise  changes  in  the  way  of  improve- 
ments. Each  and  all  were  dominated  by  the  greed 
for  gain,  and  probably  not  one  could  be  classed  as  a 
philanthropist.  Each  believed  in  the  results,  more  or 
less  important,  that  would  come  from  his  ideas.  Of 
the  many  suggestions  offered  probably  not  one  in  a 
hundred  proved  to  be  of  practical  value,  and  very  few 
that  developed  into  marked  success  received  anything 
like  an  adequate  reward  for  the  values  given.  Through 
all  this  time,  moreover,  labor  continued  to  plod  along, 
fighting  against  every  change  and  showing  envy  or 
hatred  for  the  successful  leaders  whose  brains  were 
doing  the  creative  work. 

Then  as  a  climax  comes  the  socialistic  claim  that 
"labor  creates  all  wealth,  and  all  wealth  belongs  to  the 
producers  thereof." 

Then  come  higher  ideal  moralists  who  endorse 
this  claim  in  the  name  of  justice  and  philanthrophy: 


CHAPTER  IX. 

SOME  REFORM  IDEAS. 

Critics  of  Commercialism — How  the  Professional  Classes  are 
Maintained — No  Higher  Life  Aspirations  Without  the 
Commercial  Basis — Some  Queer  Notions  about  Profits 
and  Production,  Wealth  Division  and  Demand  for  Labor. 

What  is  wrong  with  present  conditions?  They  are 
certainly  better  on  the  whole,  giving  greater  good  for 
the  greater  number  than  was  ever  before  known  or 
considered  possible,  and  the  progress  from  year  to 
year  is  a  continuing  cause  for  wonder. 

Well,  uncork  any  of  the  reformers  and  there  will 
be  an  outburst  of  objections  showing  that  everything 
is  wrong  and  getting  worse.  There  will  be  the  tirades 
against  the  greed  of  the  money  power,  the  worship 
of  the  dollar,  the  insolence  of  the  rich,  the  oppression 
of  the  poor,  and  so  on  through  all  the  familiar  varia- 
tions. All  of  these  objectors  or  denouncers  talk  of 
the  changes  for  the  better  that  should  be  forced  at 
once,  and  all  yearn  for  the  despotic  power  to  order 
the  changes  forthwith.  Present  conditions  have  been 
laboriously  developed  through  ages  of  experience  with 
all  forms  of  rule  and  misrule.  None  of  the  impas- 
sioned reformers  will  *  think  of  taking  a  backward 
look  to  note  how  vast  the  progress  that  has  been 
made,  or  to  give  any  degree  of  credit  to  the  leaders 
who  introduced  and  carried  through  the  improve- 
ments. Neither  will  any  thought  be  given  to  the 
great  majority  of  the  people  who  find  present  con- 

(71) 


72  THE  GOSPEL  OF  GREED 

ditions  reasonably  satisfactory  on  the  whole,  though 
of  course  open  to  some  criticism.  The  reformers  find 
certain  specific  evils,  and  with  their  self-assured  inspi- 
ration, denounce,  proclaim  and  demand  with  the  object 
of  a  general  overturn  of  the  existing  order. 

The  moralists  or  religious  teachers  are  particularly 
severe  on  the  spirit  of  commercialism,  which  they 
argue  is  invading  the  sanctuaries  and  crushing  out 
all  the  higher  ideals.  But  allowing  for  certain  excesses 
in  this  direction  fairly  open  to  criticism,  why  attack 
commercialism  in  general?  Without  the  spirit  of  com- 
mercialism there  could  be  little  chance  for  education 
or  higher  thinking  of  any  kind.  The  savage  think- 
ing is  centered  on  the  prospect  for  the  next  feed.  It 
is  only  after  the  industrial  idea  of  accumulating  some- 
thing has  been  in  force  that  there  is  any  leisure  for 
thinking  on  impersonal  matters. 

We  honor  scholarship  and  scientific  investigation. 
We  appreciate  the  learned  professions,  and  are  charmed 
by  the  artistic  productions  of  the  poets,  painters  and 
sculptors.  We  admire  beauty  in  all  forms.  But  why 
is  it  that  all  these  things  are  found  in  the  civilized 
countries  and  not  in  Darkest  Africa,  for  example? 
What  but  the  spirit  of  commercialism  makes  all  edu- 
cation and  higher-life  development  possible?  Indus- 
trial development  harnesses  the  forces  of  nature,  makes 
provision  for  the  future,  relieves  the  savage  struggle 
for  existence,  and  gives  the  leisure  for  education  and 
intellectual  activity  in  all  directions.  If  there  are 
individual  business  men  whose  actions  are  open  to 
criticism,  is  the  same  not  true  of  the  religious  teach- 
ers and  the  moralists  generally?  Why  should  there 


SOME  REFORM  IDEAS  73 

be  this  sneering  at  commercialism  by  the  class  whose 
entire  support  for  the  work  in  which  they  are  engaged 
must  come  from  the  industrial  workers  and  producers 
in  the  commercial  realm?  Economically  speaking, 
all  the  professional  classes,  all  the  artists  and  the 
literary  shining  lights  are  parasites,  to  be  supported 
by  the  industrial  workers.  Parasites  is  not  used  in 
an  offensive  sense,  because  all  of  these  classes  are 
workers  in  their  way,  and  are  necessary  for  the  com- 
fort and  happiness  of  the  wealth  producers,  other- 
wise they  would  not  be  so  freely  and  generously  sup- 
ported. But  it  is  from  these  classes  that  come  the 
worst  sneers  at  commercialism,  as  well  as  vicious 
attacks  on  industries  and  industrial  leaders. 

But  this  is  only  human  nature  again.  The  young 
college  graduate  holds  himself  far  above  his  old  father 
who  is  grubbing  for  the  dollars  to  pay  off  the  mort- 
gage which  provided  for  the  boy's  education  with  his 
higher  ideals.  The  old  man  may  wince  sometimes, 
but  he  loves  the  boy  and  is  proud  of  him,  and  will 
continue  to  work  for  him.  It  is  only  when  the  boy, 
in  the  assurance  of  his  superior  wisdom,  undertakes 
to  instruct  the  old  man  about  the  farm  work  and 
management  that  the  latter  enters  a  protest  to  the 
effect  that  the  experience  of  years  counts  for  some- 
thing as  against  the  half-baked  theories  which  ignore 
so  many  of  the  essential  conditions.  The  industrial 
leaders  will  put  up  with  the  sneers  and  the  criticisms 
provided  the  superior  beings  will  not  undertake  to 
block  the  industrial  progress. 

The  higher  ideals  are  all  right  in  their  way  and 
commendable,  but  it  does  not  follow  that  all  who  are 


74  THE  GOSPEL  OF  GREED 

engaged  in  commercialism  or  wealth  creation  are 
utterly  depraved  or  of  inferior  intelligence.  In  the 
struggle  for  success  something  of  the  higher  ideals 
may  have  to  give  way  for  commonplace  considera- 
tions, but  in  the  way  of  honor,  integrity  and  fair 
dealing  the  standards  maintained  in  the  commercial 
world  are  as  high  at  least  as  are  found  in  the  profes- 
sions. It  is  hardly  consistent  for  a  moralist  to  make 
a  fierce  denunciation  of  commercialism  from  the  pul- 
pit on  Sunday,  and  then  call  around  on  Monday  for 
contributions  from  the  denounced  to  enable  him  to 
continue  in  his  soul-uplifting  work. 

Another  class  of  objectors  are  of  the  philanthropic 
order  with  large  bleeding  hearts,  bowels  of  compas- 
sion, milk  of  human  kindness  and  sympathy  for  the 
oppressed.  They  are  not  wealth  producers,  of  course, 
and  they  are  horrified  at  the  tyranny  of  the  industrial 
leaders  who  control  the  wage  slaves,  and  who  insist 
on  having  a  system  ot  rules  and  regulations  for  carry- 
ing on  the  work.  This  class,  when  buying,  insist  on 
the  lowest  prices  that  can  be  forced  by  ruinous  com- 
petition. Then  they  demand  that  employers  shall  pay 
higher  wages  with  shorter  hours,  give  more  comforts 
and  aesthetic  surroundings  in  the  factories,  and  add 
to  the  cost  of  the  product  in  other  ways.  They  can 
also  tell  any  employer  how  to  manage  his  business, 
and  cannot  understand  why  the  latter  should  be  so 
greedy  for  profits,  and  talk  so  much  about  the  neces- 
sity for  returns  in  order  to  keep  the  business  running. 

Then  come  the  socialistic  agitators  who  can  prove 
that  everything  is  wrong,  and  they  are  backed  up  by 
some  high  thinkers  who  fear  for  the  liberties  of  the 


SOME  REFORM  IDEAS  75 

people  from  the  power  of  concentrated  wealth  in  the 
hands  of  a  few.  These  argue  that  the  money  kings 
must  soon  be  in  a  position  to  exercise  despotic  powers 
which  will  be  worse  for  the  people  than  the  old  forms 
of  autocratic  despotism  by  the  hereditary  rulers. 

And  so  we  might  continue  through  the  varieties 
of  the  fault-finders  who  are  eager  to  pull  down  and 
destroy  but  can  offer  nothing  in  the  way  of  upbuild- 
ing. All  have  different  points  of  view  and  differ  as 
to  the  grievances,  but  all  unite  in  condemnation  of 
the  greed  of  the  employers  who  openly,  defiantly  and 
brazenly  claim  that  they  are  working  for  profits,  and 
that  if  the  profits  are  lacking  they  will  suspend  opera- 
tions. It  is  admitted,  however,  by  some  that  there 
is  reason  in  the  claim  that  profits  are  necessary,  but 
it  is  still  argued  that  the  greed  of  the  employers  aims 
at  excessive  profits  instead  of  being  satisfied  with 
moderate  or  fair  returns. 

This  question  of  profits  brings  in  another  curiously 
naive  idea  to  the  effect  that  the  producers  can  and 
do  make  their  own  prices.  Some  of  the  wise  ones 
will  undertake  to  prove  by  figuring  on  the  cost  that 
the  selling  prices  give  too  much  of  a  margin  for  profit, 
but  when  there  comes  a  business  depression  with  low 
prices  there  is  little  heard  of  such  figuring  to  show 
the  losses.  Practically  all  of  the  authorities  who  argue 
on  prices  and  cost  assume  that  the  selling  takes  care 
of  itself  in  some  way.  The  greedy  manufacturer  or 
merchant  simply  marks  up  his  prices  and  sells.  What 
could  be  easier?  Just  keep  on  selling  and  selling,  and 
the  big  fortune  is  soon  piled  up  so  that  the  seller 
becomes  a  plutocrat  to  flaunt  his  wealth  and  grind 


76  THE  GOSPEL  OF  GREED 

the  faces  of  the  poor.  The  moralists  point  out  the 
evils  from  the  pursuit  of  wealth  and  the  craze  for 
piling  up  dollars,  and  it  all  seems  so  easy  that  the 
wonder  is  why  any  one  remains  poor  aside  from  those 
whose  higher  ideals  would  not  permit  them  to  join  in 
the  piling  up. 

But  what  about  the  buyers  to  whom  the  sellers 
sell?  What  power  or  influence  forces  them  to  take 
the  products  at  the  sellers'  terms  with  the  big  profits 
included? 

Well,  buyers  do  have  something  to  say.  They 
have  a  choice  of  the  different  sellers,  in  the  first  place, 
and  can  decline  to  buy  if  prices  or  terms  are  not  to 
their  liking.  It  doesn't  take  much  inquiry  along  this 
line  to  bring  out  the  fact  that  selling  is  a  pretty 
big  problem.  The  sellers  must  have  something  that 
the  buyers  want,  and  must  put  the  prices  at  figures 
that  the  buyers  are  willing  to  pay.  This  difference 
in  the  views  of  buyers  and  sellers  is  the  basis  for  the 
well-known  law  of  supply  and  demand  which  deter- 
mines all  values.  Sometimes  the  demand  favors  the 
seller  so  that  he  can  get  prices  which  allow  good 
profits,  while  at  other  times  he  must  accept  prices 
which  are  less  than  the  cost.  This  is  simple  enough 
for  ordinary  intelligence,  as  it  is  a  matter  of  common 
knowledge  for  all  who  buy  or  sell.  And  yet  there  is 
the  remarkable  fact  that  volumes  and  volumes  have 
been  put  forth  in  learned  and  scientific  style,  arguing 
on  questions  of  cost,  selling  prices  and  profits,  with- 
out any  reference  to  the  real  problem  of  selling  or 
any  intimation  that  the  maker  or  seller  of  the  pro- 
ducts must  take  his  chances  in  meeting  competition 


SOME  REFORM  IDEAS  77 

that  may  be  able  to  offer  better  values.  Most  of  the 
socialistic  arguments  for  government  ownership  of 
industries  are  based  on  this  same  notion  that  the 
individuals  in  control  of  industries  have  the  power 
to  fix  the  prices  which  the  buyers  must  pay.  Hence, 
they  say  that  with  government  control  the  profits 
for  the  individuals  would  be  eliminated  so  that  the 
buyers  would  get  lower  prices.  There  would  be  no 
robbery  by  the  greedy  few,  and  everybody  would  be 
contented  and  happy.  The  theory  is  attractive  enough 
and  the  promises  are  charming.  It  is  only  when  there 
is  a  little  questioning  as  to  the  practical  details  that 
the  roseate  vision  changes  to  a  colorless  and  com- 
monplace reality,  as  will  be  shown  later  on. 

Then  comes  the  appeal  to  ignorance  on  the  ques- 
tion as  to  the  inequalities.  Why  should  the  few  have 
so  much  wealth  from  the  common  store,  leaving  so 
much  less  for  all  the  others? 

This  idea  of  a  common  store  or  fixed  amount  of 
wealth  to  be  divided  is  the  crowning  blunder  of  the 
reformers  and  theorists.  Nothing  could  be  more 
absurd  or  further  from  the  truth  than  the  notion 
that  there  is  a  fixed  total  of  wealth.  Conditions  of 
wealth  production  are  constantly  changing,  giving 
varying  totals.  The  manufacturer  gains  wealth  by 
offering  a  better  product  at  lower  cost,  which  the  pub- 
lic are  willing  to  buy  and  pay  for.  The  inventor,  by 
introducing  a  new  product  or  an  improved  method, 
adds  to  the  common  store  of  wealth  a  thousand-fold 
more  than  he  can  receive  from  the  small  percentage 
of  his  profit  during  the  term  of  his  patent.  In  all 
cases  of  success  in  business  ventures,  with  compara- 


78  THE  GOSPEL  OF  GREED 

tively  few  exceptions,  the  fortunes  accumulated  rep- 
resent the  percentage  of  profit  on  some  distinct  and 
positive  benefits  offered  which  the  buyers  understand 
and  appreciate,  otherwise  they  would  not  buy  and 
there  could  be  no  profits  or  fortunes. 

If  there  was  a  shadow  of  truth  in  the  notion  of 
a  fixed  amount  of  wealth  to  be  divided,  it  would 
follow  logically  that  when  the  employers  or  capital- 
ists got  more  there  must  be  less  remaining  for  the 
workers.  So  it  is  seriously  argued  by  some  that  if 
the  accumulation  of  big  fortunes  could  be  prevented 
there  would  be  so  much  more  for  the  workers.  In 
countries  where  conditions  are  primitive,  therefore,  and 
where  there  are  no  swollen  fortunes,  labor  must  receive 
a  larger  share  or  get  the  highest  wages.  Conversely, 
by  this  same  kind  of  reasoning,  in  countries  of  the 
most  advanced  civilization  and  the  largest  wealth 
creation  with  the  biggest  fortunes  accumulated,  labor 
must  get  the  smallest  share  and  the  lowest  wages. 

Is  this  in  accordance  with  the  facts  or  not? 

Finally  we  have  the  logical  conclusion  that  if  the 
fortunes  accumulated  from  industrial  development  are 
taken  from  the  common  store,  leaving  so  much  less 
for  the  others,  there  is  the  unheard  of  and  impossible 
result  of  lowest  wages  when  business  is  prosperous 
with  big  profits,  and  highest  wages  when  business  is 
depressed,  with  panic  conditions  and  profits  lacking. 

"When  blind  lead  the  blind,  all  fall  into  the  ditch." 


CHAPTER  X. 

INDUSTRIAL  RESULTS  FROM  SOCIALISM. 

Methods  Must  be  Repressive — Small  Chance  for  Changes  or 
Improvements — The  Use  of  Machinery  and  the  Question 
of  Inventions — Position  of  the  Amateur  Socialists — 
Example  of  the  Street  Car  Service. 

The  socialistic  ideas,  in  so  far  as  they  can  be  pre- 
sented as  workable  theories,  must  be  considered  from 
two  different  standpoints.  First,  there  are  the  plans 
for  a  system  of  organized  government,  and  the  ques- 
tions as  to  the  probable  results  from  the  same — either 
in  the  direction  of  absolute  despotism  or  the  opposite 
of  largest  individual  freedom.  In  the  preceding  chap- 
ters it  has  been  shown  that  the  ideas  must  mean 
reverting  back  to  an  extreme  of  despotism  for  the 
controlling  power  such  as  was  never  before  dreamed 
of.  It  is  urged,  of  course,  that  the  governing  despots, 
with  supreme  power,  will  be  chosen  by  popular  vote, 
and  will  therefore  be  representative,  but  men  of  ordi- 
nary intelligence  understand  how  power  can  be  exer- 
cised, and  how  officials  once  in  power  can  cajole 
support  or  intimidate  opposition,  leaving  the  mass 
of  the  people  utterly  helpless  in  the  matter  of  bring- 
ing about  desired  changes.  Just  think  for  a  moment 
of  the  power  and  influence  of  government  officials  at 
present,  and  imagine  what  the  result  would  be  with 
the  powers  extended  to  the  control  of  food,  clothing 
and  shelter,  and  in  fact  all  the  details  of  human  exist- 
ence. How  could  there  be  any  hope  of  organizing 

(79) 


80  THE  GOSPEL  OF  GREED 

an  opposition  that  would  be  effective  for  making  a 
change? 

The  other  view  of  the  socialistic  ideas  is  from  the 
industrial  standpoint,  with  a  consideration  of  the 
effects  on  wealth  production  with  all  that  it  implies 
for  the  comfort  and  happiness  of  humanity.  No  one 
advocates  a  destruction  of  the  benefits  of  modern 
civilization  as  we  have  them  for  all  lines  of  produc- 
tion and  transportation,  and  going  back  to  primitive 
conditions.  Socialism  on  the  contrary  promises  more 
improvements  with  a  better  distribution  of  the  bene- 
fits, and  more  happiness  for  all.  It  is  in  order,  there- 
fore, to  consider  some  of  the  practical  questions  as  to 
what  will  be  the  effect  of  government  control  in 
stimulating  or  repressing  further  efforts  for  improve- 
ment, as  well  as  the  chances  for  a  better  distribution 
of  the  wealth  created  for  the  benefit  of  the  whole. 

In  the  mass  of  socialistic  literature  and  the  har- 
angues of  socialistic  orators  there  is  to  be  found  a 
wonderful  diversity  of  opinion.  There  are  the  Karl 
Marx  theories,  previously  referred  to,  claiming  every- 
thing for  physical  labor,  which  please  the  masses  of 
the  more  ignorant  workers.  These  workers  know  that 
they  are  doing  hard  work  for  scant  pay  while  the  em- 
ployers get  substantial  profits.  Each  compares  his 
own  wage  earnings  with  the  profits  of  the  employer 
and  notes  the  difference.  The  Karl  Marx  ideas  seem 
reasonable,  and  the  workers  are  ready  to  join  in  any 
movement  that  promises  them  a  larger  share.  Few 
will  stop  to  consider  that  there  are  other  workers  to 
be  paid,  and  that  the  total  of  the  wages  is  very  much 
in  excess  of  the  possible  profits.  Unless  the  employer 


INDUSTRIAL  RESULTS  FROM  SOCIALISM     81 

can  increase  his  selling  price,  which  depends  entirely 
on  the  market  conditions,  a  very  small  advance  in 
wages  will  easily  wipe  out  the  profits. 

Ignoring  all  this,  it  is  easy  for  the  mass  of  the 
workers  to  accept  the  doctrine  that  the  employer  is 
a  robber,  taking  what  rightly  belongs  to  the  workers 
who  do  all  the  work  of  production.  The  claim  that 
one  man  in  as  good  as  another  appeals  to  their  vanity. 
They  heartily  endorse  the  Marx  doctrine  that  there 
is  only  an  artificial  difference  between  the  common 
laborer  and  the  skilled  artizan,  and  that  it  would  be 
only  a  matter  of  a  little  training  to  turn  any  intelli- 
gent mechanic  employed  by  an  establishment  into  a 
competent  director  for  the  whole  concern.  Then  there 
is  the  fact  that  many  of  the  industrial  leaders  have 
come  up  from  the  ranks,  which  is  taken  as  proof  that 
the  others  could  do  the  same  if  they  had  the  chance. 
Of  course  the  success  of  such  leaders  proves  nothing 
for  the  mass  of  the  workers,  but  only  gives  evidence 
of  the  superiority  of  the  individuals  which  enabled 
them  to  push  their  way  to  the  front  as  a  just  reward 
for  their  ability. 

Another  class  of  socialists,  claiming  more  intelli- 
gence, admit  the  absurdity  of  the  Karl  Marx  theories 
of  equality  in  the  face  of  all  the  evidence  and  com- 
mon knowledge  to  the  contrary  showing  the  different 
degrees  of  ability.  But  they  still  claim  that  the 
employers  get  too  much,  and  that  government  control 
would  insure  a  fairer  distribution,  giving  more  to  the 
workers  while  making  due  allowance  for  individual 
merit.  This  is  in  one  sense  an  improvement  on  the 
Marx  theories,  but  in  practical  operation  it  would 


82  THE  GOSPEL  OF  GREED 

be  worse  than  the  Marx  system  of  equality  for  all. 
Who  would  decide  as  to  the  individual  claims  for 
ability?  It  is  so  easy  to  say  that  the  government 
would  do  all  this;  but  again  would  come  the  question 
as  to  who  or  what  is  this  wonderful  government? 
There  would  necessarily  be  a  set  of  government  offi- 
cials having  no  interest  in  the  matter  of  profits  or 
cost  of  production,  who  would  have  the  absolute 
power  to  fix  the  wages,  to  direct  the  workers,  and 
to  select  bosses  according  to  their  own  whims  or 
fancies.  Would  any  such  officials  be  likely  to  trouble 
themselves  about  improved  methods  or  to  listen  with 
patience  to  any  suggestions  from  the  common  workers? 

Still  another  group  of  socialistic  theorizers  frankly 
admit  that  machinery  and  methods  must  be  credited 
with  increased  production  or  wealth  creation — but  they 
are  none  the  less  opposed  to  the  capitalists,  who,  as 
it  is  argued,  hold  the  machinery  and  the  appliances 
in  a  monopolistic  control  which  prevents  labor  from 
making  use  of  the  same.  If  one  man  with  a  modern 
power-loom  can  weave,  say,  fifty  yards  of  cloth  in 
the  same  time  and  with  less  physical  effort  than  he 
could  weave  one  yard  with  the  old  hand-loom,  it  is 
evident  to  the  dullest  brain  that  the  machinery  counts 
for  something.  So  they  say  that  the  government 
(always  that  vague  idea)  should  own  the  machinery 
and  let  the  workers  have  free  access  to  it  to  get  the 
results  of  increased  production. 

These  deep  thinkers  can  see  the  machinery  which 
is  tangible,  but  they  utterly  fail  to  realize  anything 
of  the  directing  intelligence  which  is  the  real  creative 
power.  This  intelligence  first  produced  the  machines 


INDUSTRIAL  RESULTS  FROM  SOCIALISM     83 

and  is  constantly  adding  improvements.  It  also  plans 
and  builds  the  establishments  with  motive  power  for 
the  machines,  provides  the  materials,  arranges  the 
system  of  working  with  the  wages  and  the  methods 
for  getting  the  desired  results,  and  finally  markets 
the  product. 

But  waiving  the  importance  of  capital  and  the 
managing  brains,  and  assuming  that  a  new  class 
of  workers  would  be  developed  who  would  have 
instinctive  perception  enough  to  find  their  proper 
places  in  the  system  and  work  the  machinery  to  the 
best  advantage,  with  the  materials  floating  in  from 
the  sky,  the  power  running  of  itself  and  the  goods 
selling  themselves,  where  would  the  machinery  come 
from?  Who  would  invent  the  machines,  in  the  first 
place,  and  who  would  place  them  at  the  disposal  of 
the  workers? 

The  answer  again  is:  the  government,  with  that 
assumed  all-wise  intelligence  that  never  yet  existed 
in  human  beings. 

In  this  line  of  argument  it  is  necessary  to  admit 
something  for  the  machines  and  the  inventors,  in  order 
to  make  a  case  against  the  capitalistic  robbers.  It  is 
admitted  that  inventors  hope  for  rewards,  and  that 
they  are  fairly  entitled  to  some  returns.  It  is  admitted 
also  that  without  some  assurance  of  reward  the  inven- 
tors will  not  trouble  themselves  to  invent.  So  it  is 
planned  that  the  government  should  pay  the  inven- 
tors and  give  the  inventions  to  the  public  for  the 
common  good. 

That  sounds  nice  until  the  rude  questioner  puts  in 
the  query  as  to  how  it  is  to  be  done.  There  are  thou- 


84  THE  GOSPEL  OF  GREED 

sands  and  thousands  of  inventors  all  eager  and  con- 
fident that  they  have  epoch-making  ideas.  The  patent 
office  reports  show  that  thousands  every  year  have 
confidence  enough  in  their  inventions  to  pay  the 
expense  of  taking  out  patents  for  the  same.  But 
experience  proves  that  not  one  out  of  a  hundred  (and 
hardly  more  than  one  out  of  a  housand)  of  the  inven- 
tions patented  have  any  practical  value.  But  what 
individual  or  collection  of  individuals  under  any  pos- 
sible official  names,  acting  for  the  government,  could 
make  the  decisions  as  to  which  was  valuable  and 
which  worthless?  It  is  said  that  the  greedy  capital- 
ists are  anxious  to  get  hold  of  the  inventions  and 
use  them  for  further  oppressing  the  workers  who  must 
use  the  machines  or  appliances.  But  with  all  their 
greed  and  cunning,  the  capitalists  are  unable  to  decide 
in  advance  with  any  certainty  as  to  the  merits  of 
the  ideas.  It  is  well  known  that  many  of  the  most 
valuable  inventions  were  rejected  by  shrewd  capital- 
ists, while,  on  the  other  hand,  millions  and  more 
millions  have  been  wasted  in  experimenting  with 
inventions  that  either  proved  to  be  worthless  or 
were  superseded  by  something  better.  What  chance 
would  there  be  of  finding  government  officials  wiser 
in  this  particular  than  the  greedy  capitalists? 

Then  there  would  come  the  enormous  expense  of 
attempting  to  reward  the  inventors  in  the  first  place; 
and,  second,  in  undertaking  to  make  tests  of  even  a 
tenth  part  of  the  inventions.  All  such  tests  would 
necessarily  be  made  in  the  government  shops,  with 
government  materials  and  government  paid  labor,  and 
the  cost  must  somehow  come  out  of  the  wealth  pro- 


INDUSTRIAL  RESULTS  FROM  SOCIALISM     85 

duced  by  other  labor,  because  the  government  officials 
are  not  supposed  to  be  producers  on  their  own  account. 
But  if  all  these  objections  were  overcome  and  the 
government,  after  making  the  selections,  undertook 
to  supply  the  machinery  for  the  free  use  of  the  work- 
ers, what  would  be  done  with  the  discarded  machinery, 
much  of  it  very  costly,  that  is  constantly  being  replaced 
by  later  improvements  or  better  constructions? 

In  the  absence  of  any  motive  in  the  way  of  profit, 
what  official  in  any  department  would  take  the  trouble 
to  listen  with  patience  to  the  story  of  an  inventor 
claiming  some  wonderful  discovery,  or  to  a  suggestion 
for  even  a  minor  improvement  that  would  call  for 
changes  in  the  routine  methods  and  destruction  of 
the  plant  in  use? 

But  there  is  still  another  phase  to  this  matter, 
and  the  socialistic  authorities  are  not  in  accord.  The 
radical  socialists  reject  the  idea  of  rewarding  inventors 
in  any  way,  because,  as  they  argue,  such  rewards 
would  be  continuing  the  inequalities  which  it  is  the 
mission  of  socialism  to  abolish.  They  say  further 
that  the  inventors  would  invent  anyway,  that  their 
special  skill  is  due  to  the  social  conditions  and  that 
it  would  be  their  plain  duty  to  society  to  contribute 
their  ideas  for  the  common  good.  If  it  is  urged  that 
there  is  no  power  even  in  the  extreme  socialistic  des- 
potism to  force  individuals  to  disclose  their  ideas, 
and  also  that  important  inventions  have  to  be 
developed  greatly  from  the  first  ideas,  the  answer 
will  be  that  the  government  officials  with  the  bosses 
and  sub-bosses  in  charge  of  the  working  squads  would 
give  the  common  people  all  that  was  good  for  them, 


86  THE  GOSPEL  OF  GREED 

and  the  inventions  for  better  conditions  would  not 
be  needed  anyway.  In  fact  very  much  of  the  exist- 
ing improvements  could  be  dispensed  with  when  the 
common  people  are  under  proper  discipline  so  that 
they  will  be  content  with  the  equal  rations,  the  uni- 
form clothing  and  the  regulation  sleeping-bunks  that 
the  government  will  provide.  It  is  obvious  that  there 
cannot  possibly  be  enough  for  all  of  the  luxuries  of 
the  table,  the  fine  raiment,  the  diamonds  and  other 
ornaments,  the  carriages,  horseless  or  with  horses, 
the  palatial  residences  and  so  on  through  the  list. 
Hence  to  maintain  the  principle  of  equality  all  these 
non-necessaries  must  be  destroyed  or  else  reserved  for 
the  use  of  the  officials  who  make  up  the  wonderful 
all-wise  and  all-powerful  government. 

There  is  still  another  faction  of  what  might  be 
termed  amateur  socialists.  They  are  somewhat  above 
what  would  be  an  average  level,  and  while  they  are 
willing  to  have  some  of  the  higher  ones  pulled  down 
a  little,  they  are  not  ready  to  face  the  rations,  uni- 
forms, numbered  tags  and  bunks  of  the  real  thing  in 
socialistic  equality.  The  particular  grievance  of  this 
class  is  that  the  industrial  leaders  who  accomplish  big 
results  accumulate  correspondingly  big  fortunes.  They 
instance  railroads,  of  course,  and  corporations  for 
other  public  utilities,  which  they  argue  should  be 
owned  and  operated  by  the  government,  so  that 
the  profits  would  go  to  the  people  and  not  to  the 
individuals  for  lavish  display  and  riotous  living.  Then 
they  are  willing  to  have  this  government  control 
extended  to  some  of  the  leading  industries  for  the 
same  general  reasons. 


INDUSTRIAL  RESULTS  FROM  SOCIALISM     87 

There  is  always  something  to  admire  in  an  honest 
zealot  or  fanatic  fighting  for  a  principle,  no  matter 
how  mistaken  his  ideas  may  be,  but  there  is  only 
contempt  for  the  trimmer  trying  to  dodge  the  issues 
presented  and  arguing  from  the  basis  of  expediency 
instead  of  well-defined  principles. 

The  real  socialists  have  an  honest,  consistent  prin- 
ciple in  their  idea  of  an  enforced  equality  for  all  human 
beings.  Their  theories  are  visionary,  of  course;  their 
idea  of  a  government  with  omnipotent  powers  for 
direction  and  control  is  a  wild  hallucination,  and  the 
notion  that  average  human  beings  would  submit  to 
such  domination  is  an  impossible  absurdity.  But 
they  argue  fairly  for  their  beliefs  with  the  zeal  born 
of  ignorance  and  nursed  in  envy. 

For  the  amateur  socialists  there  is  no  such  excuse. 
They  understand  the  absurdity  and  futility  of  the 
socialistic  theories  of  absolute  equality  for  all,  but 
they  are  willing  to  advocate  partial  socialism  and  to 
sacrifice  the  interests  of  the  people  as  a  whole  as  well 
as  to  block  progress  and  encourage  fanatical  socialism 
by  the  experiments  with  government  ownership.  They 
profess  the  same  sweetly  confiding  faith  in  the  super- 
human wisdom  and  angelic  natures  of  the  individuals 
who  would  act  as  government  officials.  They  assume 
that  these  officials  would  be  able  to  recognize  the  value 
of  proposed  improvements  at  a  glance  and  be  eager 
to  introduce  the  same  for  the  benefit  of  the  people. 
But  when  or  where  has  officialism  ever  made  such  a 
record?  Is  not  the  tendency  always  and  everywhere 
to  oppose  any  changes  in  the  routine  of  public  service 
even  after  the  value  of  the  same  has  been  demonstrated 
by  private  enterprise? 


88  THE  GOSPEL  OF  GREED 

Suppose  that  the  city  governments  years  ago  had 
taken  possession  of  the  street  car  service  with  the 
outfit  of  horses,  drivers,  stablemen,  etc.,  all  in  the 
government  employ.  What  chance  would  there  have 
been  for  an  inventor  with  a  proposition  to  substitute 
the  cable  traction?  What  official  superintendent  would 
recommend  the  change  in  the  first  place,  and  what 
councilmen  or  aldermen  would  vote  for  the  appro- 
priation necessary  to  place  the  cables,  supply  the 
power,  fit  up  the  cars  and  at  the  same  time  sacrifice 
the  horses  and  stablemen?  But  suppose  all  this  was 
accomplished  with  the  cable  system,  giving  better 
service,  and  another  inventor  comes  along  with  the 
plans  for  the  electric  lines;  could  there  be  the  slightest 
possibility  of  getting  the  second  change  with  all  the 
investment  needed  while  sacrificing  the  cables? 

It  is  well  known  that  these  changes  were  made 
in  the  large  cities,  and  it  will  easily  be  remembered 
that  it  was  in  the  face  of  bitter  and  determined  oppo- 
sition from  the  government  officials  and  a  great 
majority  of  the  people.  The  electric  service  was 
specially  condemned  as  a  constant  danger  to  life,  and 
riotous  demonstrations  against  the  system  were  com- 
mon. But  in  this  as  in  other  great  improvements  the 
value  was  soon  demonstrated  and  the  results  accepted. 

Here  may  be  noted  a  phase  of  human  nature  that 
accounts  for  much  of  the  more  recent  criticism  and 
unrest.  It  is  well  expressed  in  the  homely  saying 
that  "much  always  wants  more."  In  the  early  days 
of  horse  cars,  people  were  greatly  pleased  with  the 
service.  No  one  thought  of  finding  fault  with  the 
slow  motion,  the  crooked  rails,  the  rattling  doors  and 


INDUSTRIAL  RESULTS  FROM  SOCIALISM     89 

windows  or  other  details,  while  the  straw  piled  on  the 
floor  in  cold  weather  was  considered  as  almost  lux- 
urious. For  going  any  distance,  no  one  objected  to 
changing  cars  and  paying  the  additional  fares  on  the 
different  lines. 

But  greed  for  gain  was  at  work,  and  the  street  car 
managers  wanted  more  profit.  To  get  this  they  must 
induce  more  people  to  ride  by  offering  better  service. 
One  of  the  early  improvements  was  in  the  shape  of 
heaters  for  the  cars  in  cold  weather,  doing  away  with 
the  luxurious  (?)  but  usually  filthy  straw,  and  here 
began  the  fault-finding.  The  little  stoves  had  their 
limitations,  and  were  too  hot  for  those  nearest,  while 
too  cold  for  those  further  away.  The  companies  spared 
no  expense  in  testing  different  devices,  but  the  fault- 
finding only  increased.  Then  consolidations  of  shorter 
lines  were  effected,  in  spite  of  the  anti-monopoly  howl- 
ing, which  enabled  the  roads  to  offer  the  inducement 
of  longer  rides  for  single  fare.  With  this  came  more 
trouble,  because  the  public  wanted  more  transfer  priv- 
ileges covering  more  lines  and  longer  routes. 

The  companies  kept  on  in  their  greed  for  gain  with 
their  policy  of  more  improvements  for  better  service 
to  attract  more  patronage.  Money  was  poured  out 
lavishly  for  the  changes  from  horses  to  cables,  and 
from  cables  to  electricity,  when  it  was  shown  that 
the  cost  could  be  reduced  so  that  more  passengers 
could  be  carried  for  longer  distances  to  increase  the 
earnings. 

In  view  of  what  has  been  done  during  the  past 
twenty-five  years,  who  will  venture  to  say  that  no 
further  improvements  are  possible? 


90  THE  GOSPEL  OF  GREED 

Who  has  benefitted  most  by  the  improvements 
and  changes?  Do  the  street  car  companies  pay  higher 
rates  of  dividends  or  earn  more  for  the  capital  invested 
than  they  did  with  the  primitive  horse  car  system? 
Well,  possibly  a  little;  but  the  lines  are  now  controlled 
by  strict  regulations  enforced  by  state  or  municipal 
authority,  with  the  object  of  holding  profits  down  to 
limited  figures.  In  fact,  practically  all  the  benefits 
of  the  street  car  improvements  have  gone  to  the 
public  in  better  service. 

Then,  of  course,  as  reasoning  beings,  the  public 
must  appreciate  and  honor  the  enterprising  managers 
of  the  companies  whose  brains,  energy  and  capital 
gave  such  results. 

Well,  if  you  think  so  just  stand  on  the  street  corner, 
where  half  a  dozen  persons  have  been  waiting  more 
than  sixty  seconds  for  the  next  car,  and  listen  to  their 
remarks  about  the  outfit  of  the  road  from  top  to  bot- 
tom and  the  personality  of  the  management  individu- 
ally and  collectively.  And  all  are  terribly  in  earnest 
with  their  alleged  grievances. 

The  practical  question  is,  however,  would  public 
ownership  result  in  further  improvements  with  better 
service  or  not?  The  comparatively  insignificant  item 
of  profits  as  compared  with  total  expenses  might 
easily  be  made  to  disappear;  but,  assuming  a  large 
measure  of  regeneration  for  public  officials  as  we 
know  them,  would  the  present  small  margin  for  profit 
be  more  likely  to  be  religiously  used  for  giving  better 
service,  or  would  it  go  into  increased  expenses  with 
poorer  service? 


CHAPTER  XL 

THE   ECONOMIC  STONE  WALL   FOR  SOCIALISM. 

Enormous  Increase  of  Wealth  Production  Called  for — How 
will  it  be  Provided?— The  Share  of  Capitalists— A  Fiat 
Wealth  Suggestion — The  Grand  Ideas  of  One  Reformer. 

In  all  the  various  phases  of  socialistic  theorizing 
there  is  one  point  on  which  all  are  agreed,  and  that 
is  the  weird  and  wonderful  powers  of  the  thing  called 
government.  All  the  problems  and  all  the  difficulties 
of  detail  are  simply  waived  aside  to  be  turned  over 
to  the  government.  In  ruling,  this  government  will 
be  despotic  without  despotism,  tyrannical  without 
tyranny,  centralized  without  centralization,  and  in 
fact  combining  all  the  features  that  can  be  suggested 
to  meet  the  ideas  of  those  who  want  a  change. 

Some  of  these  discrepancies  in  the  ideals  have  been 
briefly  outlined  in  the  preceding  chapters,  as  well  as 
some  of  the  economic  principles  involved,  and  the 
intelligent  reader  can  easily  fill  in  with  thousands  of 
examples  in  the  way  of  proof. 

Some  will,  no  doubt,  at  once  quote  numerous 
examples  to  the  contrary  as  disproof.  If  it  is  said 
that  fortunes  are  evidence  of  larger  benefits  given 
to  the  public,  then  will  come  the  list  of  familiar  names 
whose  fortunes  were  acquired  by  speculative  gambling 
or  different  questionable  means  down  to  plain,  criminal 
robbery.  But  when  all  these  are  counted  they  will 
still  be,  in  comparison  with  the  whole,  the  few  excep- 
tions that  prove  the  rule  rather  than  arguing  against 

(91) 


92  THE  GOSPEL  OF  GREED 

it.  They  will  stand  for  the  unpleasant  side  of  human 
nature  or  the  worst  forms  of  greed  that  it  is  the  pro- 
vince and  duty  of  government  to  suppress  as  far  as 
possible. 

Now  a  few  words  about  the  economic  phase  of  this 
mystifying  socialistic  government.  It  is  promised  to 
supply  and  furnish  everything  that  is  good  for  human- 
ity. There  is  to  be  an  abundance  for  all,  so  that  no 
one  shall  know  want.  Government  is  to  find  ways 
and  means  for  all  kind  of  enterprises  and  improve- 
ments, reward  inventors — perhaps — make  and  supply 
machinery,  see  to  it  that  there  is  employment  and  a 
good  living  for  all,  educate  the  young,  provide  com- 
petence for  the  old,  and  so  on  for  pages  of  other  prom- 
ises according  to  the  flights  of  fancy  of  the  socialistic 
apostles. 

Now  all  this  calls  for  a  tremendous  total  of  solid, 
substantial  wealth  of  products,  not  to  speak  of  money, 
and  the  flippant  doubter  will  ask:  where  are  the  sup- 
plies of  all  descriptions  to  come  from? 

The  usual  socialistic  answer  is  something  in  the 
way  of  counter  questions.  The  government  is  all- 
powerful  now,  is  it  not?  The  government  in  an  emer- 
gency can  take  the  property  and  the  lives  of  the  citi- 
zens, if  need  be,  for  common  defense  by  the  law  of 
self-preservation.  Then,  can  it  not  take  all  the 
wealth  needed  for  other  purposes?  The  government 
can  issue  money  or  promises  to  pay  and  make  them 
legal  tender.  If  it  owns  everything  it  can  use  every- 
thing, so  there  is  no  trouble  about  the  power  to 
supply. 

This  is  as  clear  and  convincing  as  all  the  rest, 


THE  ECONOMIC  STONE  WALL  FOR  SOCIALISM    93 


with  about  the  same  logical  jumbling.  The  govern- 
ment can  take  and  use  what  is  already  produced,  but 
then  comes  the  question  of  future  production.  The 
taxing  power  cannot  be  used  when  there  is  no  one 
to  tax  and  no  private  property  to  take.  If  produc- 
tion is  to  continue  there  must  be  substantially  the 
same  organization  as  at  present.  There  must  be  gen- 
eral directors,  managers,  superintendents,  foremen 
and  bosses  with  some  kind  of  titles,  but  doing  the 
same  work  of  managing  as  under  the  present  system. 
These  in  numbers  would  about  equal  the  present  cap- 
italistic robbers  whom  they  would  displace,  so  that 
there  would  be  no  increase  to  speak  of  in  the  working 
force. 

But  the  socialistic  reformers  promise  to  provide 
for  the  millions  who  are  destitute,  and  to  give  much 
more  to  the  great  majority  who  must  now  be  content 
with  the  little  they  are  getting.  It  is  needless  to  say 
that  such  increases  quickly  figure  up  to  surprising 
totals.  No  good  socialist  would  think  of  promising 
less  than  double  the  present  share  of  wealth  received 
by  the  toilers,  while  some  argue  that  eight  times  as 
much  would  not  be  unreasonable  when  the  robber 
capitalists  are  abolished.  If  the  luxuries  now  pro- 
duced for  the  capitalistic  robbers  and  the  idle  rich 
were  all  shut  off  and  did  not  go  to  the  government 
officials  and  bosses,  so  that  the  workers  in  these  lines 
could  be  turned  to  the  other  lines  for  the  commoners, 
they  could  not  add  much  to  the  total  production  as 
the  statistics  of  industries  will  easily  prove. 

The  permanent  forms  of  wealth  in  buildings,  rail- 
roads, land  values  and  public  utilities  generally,  even 


94  THE  GOSPEL  OF  GREED 

if  all  were  confiscated  by  the  government,  could  not 
add  materially  to  the  wealth  production  for  current 
wants.  The  values  could  not  be  mortgaged  because 
there  would  be  no  one  to  lend.  The  capital  needed  for 
industries  or  for  any  possible  changes  must  come  from 
the  products  of  the  actual  workers.  With  the  dis- 
cipline of  the  working  squads  and  the  enforced  equality 
of  government  uniforms,  rations  and  sleeping-bunks, 
considerable  could  be  saved  from  the  labor  produc- 
tion. But  socialistic  promises  do  not  mention  this 
feature.  They  hold  out  the  allurements  of  better  con- 
ditions for  all  with  the  best  none  too  good  for  the 
labor  which  produces  all  wealth. 

Where,  then,  will  the  supply  of  from  two  to  eight 
times  the  present  production  come  from?  The  gov- 
ernment must  have  it  before  it  can  be  distributed. 
Greedy  capitalistic  robbers  might  suggest  more  ma- 
chinery or  still  better  systems,  but  they  are  barred 
out  and  must  get  into  the  ranks. 

The  only  possible  answer  must  be  that  the  toilers 
must  do  two  to  eight  times  as  much  work  as  they 
are  now  doing,  or  if  they  cannot  do  this,  then  the 
government  must  take  two  to  eight  times  the  share 
of  the  product  that  is  now  taken  by  the  capitalistic 
robbers. 

This  is  the  economic  stone  wall  that  socialistic 
theories  cannot  get  over  or  break  through.  Before 
more  wealth  can  be  distributed  to  those  who  now  get 
less,  more  must  be  produced.  The  total  production 
is  now  regulated  for  the  demand  as  nearly  as  the 
best  intelligence  of  capitalistic  greed  can  figure  it, 
and  in  the  main  it  is  fairly  distributed.  For  the  great 


THE  ECONOMIC  STONE  WALL  FOR  SOCIALISM   95 

increase  wanted  either  the  workers  must  work  more 
hours  or  else  they  must  accept  less  for  their  share  of 
the  product,  which  would  be  equivalent  to  less  wages 
in  the  socialistic  bread-ticket  currency. 

But  there  is  the  share  now  taken  by  the  capital- 
istic robbers,  will  not  that  give  all  the  additional  sup- 
ply needed? 

Yes,  it  will  not. 

But  there  are  United  States  census  figures  for  1905: 

Value    of    products    for    the    Manufacturing 

industries $14,802,147,087 

Total  wages  paid 2,611,540,532 

Does  not  this  show  that  labor  receives  less  than 
one-fifth  of  the  product  it  creates? 

According  to  the  characteristic  way  in  which  the 
high-minded  socialistic  authorities  quote  the  figures, 
it  might  appear  so.  But  in  the  same  column  from 
which  these  figures  are  taken  there  are  other  items 
as  follows: 

Salaries,  officials,  clerks,  etc 574,761,231 

Miscellaneous  expenses 1,455,019,473 

Cost  of  materials  used   8,503,949,756 


Total 10,533,730,460 

Adding  this  total  to  the  sum  of  the  wages  paid 

and  deducting  the  whole  from  the  value  of  the 

products,  gives  a  margin  for  the  capitalistic 

robbers  out  of  which  must  come  all  the  general 

expenses,  interest  on  capital,  etc.,   the  sum  of      $1,656,876,095 

The  total  capital  invested  being   $12,686,265,673 

This  makes  quite  a  different  showing  from  the 
deliberate  trickery  of  the  socialistic  figuring  to  make 
it  appear  that  the  capitalistic  robbers  take  four-fifths 


96  THE  GOSPEL  OF  GREED 

of  the  value  of  the  production.  The  actual  margin 
for  possible  profits  is  but  little  over  ten  per  cent. 
For  an  accurate  analysis  there  would  have  to  be  a 
further  allowance  for  duplicating  values  in  cases  where 
the  product  of  one  industry  furnishes  the  materials 
for  another  and  so  is  counted  twice  in  the  total  for  all. 
Other  allowances  for  other  necessary  expenses  would 
easily  bring  the  margin  for  net  profits  well  down  to 
the  normal  interest  rate  on  the  capital  invested, 
which  is  in  exact  accordance  with  the  facts  as  all  busi- 
ness men  know  and  understand,  the  big  profits  being 
always  exceptional. 

Then  there  is  the  item  of  "Cost  of  materials  used." 
Surely  the  materials  did  not  produce  themselves  or 
prepare  themselves  for  use,  and  they  must  represent 
a  large  element  of  labor  for  which  wages  were  paid. 
It  is  safe  to  say  that  the  net  profits  for  those  engaged 
in  preparing  the  materials  for  use  do  not  vary  much 
from  the  general  average,  but  something  might  be 
claimed  in  the  way  of  a  saving  if  the  government 
had  control  of  the  fields,  the  forests  and  the  mines, 
and  so  for  a  liberal  estimate  we  might  take  as  high 
as  one-quarter  of  the  value  of  the  whole  total  of  ma- 
terials used  (although  this  covers  many  manufactured 
products  like  lumber,  iron  and  steel,  leather)  and 
assume  that  so  much  more  could  be  taken  from  the 
capitalistic  robbers.  This  would  give  about  $2,126,- 
000,000  for  the  materials,  which  added  to  margin  of 
$1,656,000,000  for  possible  profits  as  shown  by  the 
census  figures,  would  give  $3,756,000,000,  which  would 
be  but  a  little  over  twenty-five  per  cent  of  the  total 
value  of  the  production  of  $14,802,147,087. 


THE  ECONOMIC  STONE  WALL  FOR  SOCIALISM  97 

It  would  be  necessary  also  for  the  government  in 
some  way  to  accumulate  a  store  of  supplies  approxi- 
mately equal  to  the  capital  now  employed  in  carry- 
ing on  the  industries,  because  the  workers  would  all 
have  to  be  cared  for  with  food,  clothing  and  shelter, 
and  the  officials  would  necessarily  provide  them- 
selves with  some  additional  comforts.  The  wealth 
production  of  labor  in  agriculture  would  show  a  larger 
margin  between  the  wages  paid  and  the  value  of  the 
product  than  in  manufacturing,  but  here  the  wealth 
comes  directly  from  the  forces  of  nature,  and  there 
is  more  uncertainty  as  to  the  results.  There  may  be 
bounteous  harvests  or  crop  failures  with  the  same 
labor,  and  there  is  no  way  of  estimating  or  regulating 
the  supply  with  any  degree  of  accuracy.  But  there 
are  few  complaints  about  swollen  fortunes  in  agri- 
culture, so  it  may  be  assumed  that  there  is  little  of 
the  wholesale  plundering  by  the  robber  capitalists. 
There  are  charges  of  robbery  in  the  transportation 
and  marketing,  but  in  the  worst  view  this  would 
be  minor  as  compared  with  the  value  of  the  whole 
product. 

The  question  in  this  connection  is:  how  could  the 
general  production  be  increased  to  give  the  supply 
needed  for  the  grand  distribution  by  the  beneficent 
socialistic  government?  Again  the  answer  must  be: 
more  work  for  the  workers,  cultivating  larger  areas, 
or  more  taken  by  the  government  officials,  leaving 
less  for  the  workers.  The  possibilities  of  saving  by 
doing  away  with  the  capitalists  would  be  smaller  than 
for  the  manufacturing  industries. 

Taking  the  most  roseate  view  possible,  and  assum- 


THE  GOSPEL  OF  GREED 


ing  that  extraordinary  ability  on  the  part  of  the 
government  officials  would  save  the  amount,  from  one- 
tenth  up  to  one-quarter,  now  taken  by  the  capitalists, 
how  far  will  this  saving  go  towards  supplying  the 
much  greater  wealth  needed  for  carrying  out  the  splen- 
did promises  of  less  work,  more  wages  and  unlimited 
abundance  for  all,  with  the  triumph  of  socialism? 

Just  as  a  trifling  detail  it  might  be  asked  how  the 
production  would  be  regulated  in  the  different  lines? 
The  great  problem  for  the  capitalistic  robbers  in  busi- 
ness and  industries  is  to  market  the  products  and 
avoid  making  more  than  the  demand  calls  for.  The 
goods  must  be  made  up  long  in  advance  of  the  season 
when  they  are  wanted,  and  how  will  the  socialistic 
orders  be  given? 

Well,  a  supreme  grand  council  or  cabinet  of  the 
Supreme  Grand  High  Whatever-he-may-be-called, 
made  up  of  Supreme  Grand  Directors  representing 
all  the  different  industries,  could  consider  the  matter 
and  arrange  for  dividing  up  the  population  into  groups 
and  sections,  the  numbers  of  which  would  be  ordered 
to  report  to  the  managers  at  the  different  places 
where  they  would  go  to  work  as  directed.  If  mis- 
takes were  made  in  the  figuring  so  that  too  many 
were  ordered  for  raising  wheat  or  grinding  flour, 
there  might  be  shortages  in  the  supplies  of  shoes  or 
hats,  or  clothing  or  other  necessaries.  This  detailing, 
so  that  all  should  have  work  of  the  kind  they  enjoyed 
and  the  production  be  exactly  balanced  in  all  lines, 
would  stagger  any  collection  of  capitalistic  robbers, 
but  it  would,  no  doubt,  be  child's  play  for  the  won- 
derful socialistic  government  that  would  be  all-power- 
ful and  all-wise. 


THE  ECONOMIC  STONE  WALL  FOR  SOCIALISM    99 

There  is  one  other  suggestion  that  might  help  out. 
Some  years  ago  we  had  the  legal-tender  or  "fiat-money" 
question  in  political  campaigns.  It  was  argued  then 
that  the  fiat  of  the  government  stamped  on  paper  was 
value  enough  for  any  one,  either  capitalist  or  worker, 
and  that  the  promise  to  pay  gold  dollars  was  unneces- 
sary. Why  not  adopt  this  same  idea  for  socialism 
and  have  fiat  orders  for  food,  clothing,  sleeping-bunks 
and  supplies  generally?  Any  good  socialist  ought  to 
be  satisfied  with  a  fiat  bread-ticket,  instead  of  the 
real  bread,  in  case  the  Grand  Director  of  the  Bread 
Department  had  miscalculated  and  run  short  in  the 
supply;  and  the  same  with  other  articles.  Fiat  bread 
might  not  be  filling  for  the  interior,  and  fiat  clothing 
might  be  cool  and  airy  for  the  exterior,  but  heroic 
faith  in  the  government  should  make  them  satisfactory. 

Such  fiat  power  is  trifling  in  comparison  with 
many  other  of  the  omnipotent  features  claimed  or 
promised  for  that  wonder  of  wonders,  a  socialistic 
government.  The  more  you  think  of  it  the  more 
there  is  in  this  fiat  idea  as  an  improvement  on  all 
previous  socialistic  theories.  Have  a  government  with 
faithful  believers,  and  fiat  orders  for  all  the  necessaries, 
comforts  and  luxuries,  as  well  as  for  buildings  and 
transportation,  and  there  you  are!  Wage  slaves  are 
emancipated,  toil  is  abolished,  all  wants  and  desires 
are  satisfied,  all  happy  and  free  from  care,  nothing 
to  do  but  think  high  thoughts,  and  human  existence 
one  grand,  sweet  song.  Who  could  hesitate  in  join- 
ing the  propaganda  for  the  triumph  of  socialism? 

Is  the  foregoing  an  overstatement  of  the  vagaries 
of  the  socialistic  theories?  Listen  to  what  one  of  the 


100  THE  GOSPEL  OF  GREED 

shining  lights  of  modern  scientific  socialism  has  to 
say.  After  referring  to  some  of  the  results  from 
inventions,  utilizing  the  forces  of  nature  and  organ- 
ized methods,  and  proving  in  the  characteristic  way 
that  labor  is  robbed  of  seven-eighths  of  the  wealth 
it  produces,  he  continues: 

"But  if  the  labor  of  man  has  grown  so  fruitful  in  every  field; 
if  he  is  able  with  the  same  expenditure  of  effort  to  create  eight 
times  the  wealth  his  forefathers  could  create,  then  should  he 
receive  just  so  much  more  wealth  in  return,  or  he  has  a  right 
to  think  that  he  is  wronged.  This  wealth,  now  so  rapidly 
created  in  every  field,  is  after  all,  that  of  which  the  real  wealth 
of  the  world  consists,  the  possession  of  which  means  ease  and 
comfort,  or  the  lack  of  which  means  starvation,  despair,  and 
death.  If,  then,  I,  standing  at  a  modern  machine,  can  produce 
eight  times  the  wealth,  on  the  average,  that  my  ancestors  could, 
then  should  I,  working  the  same  hours  as  they,  receive  just  eight 
times  as  much  in  return.  Or,  should  I  choose  leisure  rather 
than  abundance,  I  should  be  able  by  working  one  hour  to  their 
having  worked  eight  hours,  to  nevertheless  live  as  well  and  as 
comfortably  as  they.  Progress  should  thus  mean  to  man  leis- 
ure and  plenty;  a  care-free  life  and  the  utmost  abundance." 

After  some  further  alleged  arguing  to  show  how 
labor  is  robbed  and  oppressed,  we  have  the  following: 

"Labor  then,  today,  what  with  our  enormous  progress  in 
labor-saving  inventions  and  methods,  creates,  as  we  have  seen, 
eight  times  the  wealth  it  could  create  one  hundred  years  ago. 
We  have  seen,  too,  that  the  toilers  of  a  century  ago  received  a 
living;  and  the  toilers  of  today  receive  no  more." 

If  this  is  scientific  socialism,  is  it  any  wonder  that 
common  sense  laughs  at  it?  If  "I,  standing  at  a 
modern  machine,  can  produce  eight  times  the  wealth," 
who  or  what  makes  the  difference,  is  it  "I"  or  the 
machine?  Then  where  did  "I"  get  the  machine  to 


THE  ECONOMIC  STONE  WALL  FOR  SOCIALISM  101 

stand  at?  Did  it  grow  there  or  did  some  one  labor 
for  years  in  inventing  and  perfecting  it,  and  did  the 
capitalistic  robbers  build  it  and  set  it  up  with  the 
power  to  run  it  and  instruct  "I"  how  to  use  it  to  get 
a  particular  result  in  the  product? 

Furthermore,  if  "I"  get  eight  times  the  wages  for 
eight  times  the  production,  how  can  there  be  any- 
thing for  the  public  in  lower  prices  when  the  labor 
cost  is  the  same?  If  there  are  no  lower  prices  how 
can  the  increased  production  be  marketed?  In  plain 
English  and  in  any  common-sense  view,  this  scien- 
tific, high-minded  denouncer  of  capitalistic  robbers 
and  commercial  greed  proposes  that  the  toilers,  so 
called,  who  "stand  at  the  machines"  shall  take  forci- 
ble possession  of  the  same,  and  rob  all  the  other  toilers 
who  had  a  hand  in  making  and  setting  up  the  ma- 
chines, not  of  a  part,  but  of  the  total  of  their  product. 
He  also  proposes  that  having  taken  the  machines, 
these  toilers  will  proceed  to  charge  eight  times  the 
labor  cost  of  the  products  and  make  the  buyers  pay. 
This  would  surely  "mean  leisure  and  plenty;  a  care- 
free life  and  the  utmost  abundance."  Such  a  pros- 
pect must  make  any  greedy  capitalistic  robber  fairly 
gasp,  and  hate  himself  because  he  has  so  long  over- 
looked the  splendid  possibilities  for  plunder  as  set 
forth  by  the  scientific  socialists. 

Finally,  note  the  really  charming  logic  of  the 
statement  that  the  toilers  of  a  century  ago  received 
a  living,  and  that  the  toilers  of  today  get  no  more. 

Quality  cuts  no  figure  with  this  brand  of  science. 
The  free-lunch-counter  feed  gives  a  belly  full,  and  the 
ten-dollar-a-plate-banquet  can  do  no  more.  The 


102  THE  GOSPEL  OF  GREED 

blanket  and  breech-clout  cover  nakedness,  and  the 
swell  tailors'  productions  can  do  no  more.  The  dug- 
out or  wigwam  keeps  off  the  rain,  and  the  grand  palace 
can  do  no  more.  The  sick  a  century  ago  lived  until 
they  stopped  breathing,  and  with  all  the  advance  of 
medical  science  the  sick  of  today  can  do  no  more. 

It  is  perhaps  needless  to  add  that  this  particular 
"scientific  gent"  finds  that  all  labor  is  being  oppressed 
and  plundered,  and  that  all  the  wealth  of  the  country 
is  being  concentrated  and  held  by  a  few  of  the  gigantic 
robber  capitalists.  Naturally  also  he  ridicules  all 
other  propositions  or  plans  for  reforms,  and  has  ideas 
of  his  own  which  he  would  like  to  have  the  despotic 
power  to  enforce.  He  would  have  the  toilers  take 
possession,  forthwith,  of  all  the  industrial  establish- 
ments and  organizations,  without  any  nonsense  about 
payment,  and  run  them  as  partnerships,  the  toilers 
in  each  electing  their  own  bosses  and  managers.  This 
is  "The  Coming  Revolution"  promised,  which  will 
give  the  toilers  eight  times  the  wages  and  the  products 
at  one-eighth  prices,  organization  with  despotic  powers 
for  enforcing  obedience  and  no  one  obliged  to  submit. 

Poor  old  Jack  Cade,  according  to  Shakespeare,  was 
a  reformer  in  his  day  when  he  promised  that  all  penny 
loaves  should  be  sold  for  a  ha'penny,  that  all  pint  meas- 
ures should  hold  a  quart,  that  no  tapsters  should  be 
allowed  to  keep  reckonings,  and  sundry  other  equally 
attractive  regulations  against  the  rich  robbers.  But 
Jack  Cade,  in  his  limited  way,  never  could  dream  of 
the  rainbow  promises  of  impossibilities  as  set  forth 
by  the  hysterical  advocates  of  modern  scientific 
socialism. 


CHAPTER  XII. 

PROFESSIONAL  AND  AMATEUR  SOCIALISM. 

Qualifications  for  Criticism — Profit  for  Professional  Reformers 
— More  Danger  From  the  Zeal  of  Fanatical  Believers — 
The  Results  Wanted  and  How  to  Get  Them — General 
Grant  a  Military  Monopolist. 

It  is  a  curious  phase  of  human  nature  to  note 
how  much  more  some  people  know  about  other  peo- 
ple's business  than  the  other  people  know  them- 
selves. It  was  remarked  by  a  railroad  official  at  a 
recent  legislative  hearing  that  it  was  unfortunate  for 
the  great  railroad  interests  of  the  country  to  find  the 
best  railroad  managers  (as  proved  by  the  criticisms) 
engaged  in  practicing  law  or  some  other  occupations. 
Every  man  knows  how  to  run  a  hotel  better  than  the 
proprietor.  The  sidewalk  committee  of  gazers  can 
point  out  the  blunders  of  the  architect  who  is  putting 
up  the  building,  etc.,  etc.,  etc.,  for  several  chapters. 
So  in  the  industrial  world  progress  and  wealth  pro- 
duction, with  business  management  for  the  larger  and 
grander  results,  must  go  blundering  along  because  the 
brightest  brains  with  the  acme  of  knowledge  are 
engaged  in  tutoring  at  colleges,  writing  novels  or 
preaching  to  small  and  poor  congregations,  where  they 
never  have  a  chance  to  show  what  they  could  do  or 
prove  their  abilities  as  great  leaders.  But  they  can 
all  tell  what  should  be  done,  and  they  can  demonstrate 
that  the  real  industrial  leaders  are  all  hopelessly 
wrong. 

(103) 


104  THE  GOSPEL  OF  GREED 

Then  it  is  always  easy  and  more  or  less  profitable 
to  be  a  reformer  with  an  income  from  publications  or 
speechmaking.  Take  up  socialism,  for  example.  No 
human  being  has  any  clear  idea  as  to  what  is  included 
in  the  term,  so  just  advocate  socialism  or  government 
control  more  or  less,  according  to  the  occasion  or  the 
audience.  Collect  all  the  examples  of  wrong  doing, 
public  calamities,  individual  suffering,  not  forgetting 
the  high-light  contrasts  with  the  pleasures  of  the 
rich;  rake  up  everything  from  palace  to  tenement, 
and  from  earthquakes  and  conflagrations  down  to 
measles,  chicken-pox,  grasshoppers  and  hog  cholera, 
and  add  as  a  comment  on  every  incident:  "All  this 
would  be  changed  with  the  triumph  of  socialism." 

This  will  appeal  to  the  ignorant,  inflame  class 
hatred,  encourage  arson,  assassination,  riots  and 
bomb-throwing.  It  may  frighten  capitalists  and  par- 
alyze industries  with  suffering  or  starvation  for  mil- 
lions of  workers  or  bring  on  a  grand  red  revolution, 
but  what  matter?  You  gain  notoriety,  with  some 
dollars.  You  are  a  self-guaranteed  reformer,  with 
"signature  on  the  label."  Then  you  may  be  assured 
also  that  when  the  grand  "triumph"  comes,  though 
you  hope  it  never  will,  your  dupes  will  turn  and  rend 
you  as  they  always  do  when  they  find  how  they  have 
been  tricked  and  humbugged  for  their  own  destruction. 

If  one-tenth  part  of  what  the  reformers,  for  revenue 
only,  so  persistently  urge  was  true  concerning  the 
capitalistic  robbers,  the  red  revolution  should  not  be 
delayed  one  hour.  But  red  revolutions  are  led  by 
men  with  red  blood,  not  by  white-faced,  intellectual 
freaks  with  fanciful  theories  of  angelic  conditions. 


PROFESSIONAL  AND  AMATEUR  SOCIALISM  105 

The  mob  leaders  would  be  of  the  coarse,  brutal  order, 
worse  in  fact  than  the  capitalistic  robbers  or  the  idle 
rich,  and  the  aesthetic,  literary  shining  lights  would 
be  tramped  in  the  gutter  by  the  mad  rush  for  plun- 
der and  revenge  of  the  crazed  revolutionists. 

Does  it  ever  occur  to  this  literary  socialistic  cult 
that  with  the  triumph  of  socialism  all  high  thinking 
would  be  an  exclusive  governmental  function?  Gov- 
ernment control  of  industries  would  necessarily  include 
control  of  all  printing  and  publications.  What  would 
be  the  use  of  thinking  great  thoughts  that  had  to  die 
with  the  thinking?  With  any  genuine  socialistic 
equality,  the  thinkers  for  printing  and  publishing 
would  be  detailed  by  tag  numbers  to  take  their  turn 
at  high  thinking  and  printing,  after  which  they  would 
rotate  back  again  to  the  sewer-cleaning  gang. 

When  printing  came  into  use  despots  and  officials 
generally  realized  the  power  that  could  be  exercised 
by  this  means  and  lost  no  time  in  providing  for  regu- 
lating, restricting  and,  in  fact,  controlling  all  publica- 
tions. It  is  needless  to  refer  to  the  long  struggle  for 
free  press  and  free  speech  in  the  progressive  countries, 
or  to  the  drastic  rules  for  censorship  still  in  force 
where  more  despotic  power  is  retained.  Can  it  be 
doubted  that  socialistic  despots,  once  in  control,  would 
not  exercise  the  same  paternal  guidance  over  publica- 
tions to  prevent  the  spread  of  error,  of  course,  and 
insure  the  right  kind  of  instruction  for  the  people? 

With  partial,  or  the  so-called  scientific  brand  of 
socialism,  which  is  to  retain  all  the  results  of  individual 
competition  and  destroy  the  competition  at  the  same 
time,  it  is  argued  that  there  will  be  no  material  change 


106  THE  GOSPEL  OF  GREED 

from  present  conditions  further  than  that  the  gov- 
ernment control  will  be  so  much  better  than  the 
domination  of  the  capitalistic  robbers.  The  trouble 
now  is,  in  plain  language,  that  high  thinkers,  like 
common  workers,  have  to  hunt  for  jobs.  Socialism 
promises  that  the  government  will  furnish  the  jobs 
for  all,  giving  a  certain  pay  in  bread  tickets  or  supply 
orders,  for  certain  hours  of  labor.  These  orders,  it 
is  assumed,  will  be  liberal  enough  so  that  all  who 
feel  inclined  may  lay  off  from  one-half  to  two-thirds 
of  the  working  time  and  indulge  in  high  thinking  or 
high-class  literary  work.  Isn't  that  charming  enough 
to  make  any  one  a  socialist? 

But  then  that  square-jawed,  flat-headed,  common- 
sense  questioner  comes  up  again  and  asks  about  those 
jobs.  What  are  they,  where  are  they,  who  is  the 
boss,  what  are  the  regulations  and  what  do  we  get? 
It  does  not  satisfy  him  to  say  that  the  government 
will  attend  to  all  that.  He  wants  something  more 
than  phantom  jobs  and  fiat  orders  for  payment.  With 
all  the  greed  for  gain  on  the  part  of  the  capitalistic 
robbers  at  present,  and  all  their  plans  for  exploiting 
and  robbing  the  workers  and  their  eagerness  to  get 
more  workers  to  rob  in  order  to  pile  up  more  fortunes, 
yet  there  are  armies  of  unemployed  at  times,  march- 
ing and  demanding  work  or  bread.  What  kind  of 
robbers  are  these  who  neglect  such  opportunities? 
All  they  have  to  do  is  to  put  the  unemployed  to  work 
creating  wealth  and  rob  them  of  a  share  of  product. 
It  is  no  answer  to  say  that  the  capitalists  cannot  sell 
the  products,  because  every  high-thinking  socialistic 
authority  knows  that  the  products  sell  themselves, 


PROFESSIONAL  AND  AMATEUR  SOCIALISM  107 

and  that  the  only  question  involved  is  capitalistic 
robbery.  So  if  the  robbers  refuse  to  rob  it  is  clear  to 
the  socialistic  intelligence  that  they  must  be  influenced 
by  a  satanic  hatred  which  aims  at  nothing  less  than 
destruction  for  the  workers.  Why  the  robbers  should 
desire  to  destroy  the  workers  who  produce  the  wealth 
to  be  robbed  is  not  clear,  and  it  looks  like  running  up 
another  logical  stump,  but  then  there  is  the  govern- 
ment which  will  take  care  of  all  such  troublesome 
questions  and  make  all  happy. 

For  the  doubters  who,  somehow,  cannot  have  this 
implicit  faith  in  the  government,  there  remains  the 
questions  about  the  jobs  or  the  employment  that  is 
to  be  furnished  for  all  who  are  willing  to  work,  as 
well  as  the  kind  and  quantity  of  the  supplies  to  be 
served  out  in  payment.  If  the  socialistic  authorities 
could  only  agree  on  some  details,  comparisons  could 
be  made  to  show  just  how  much  was  to  be  gained 
for  workers — as  workers  as  well  as  consumers.  Social- 
ism promises  work  for  all  and  a  competence,  with  plenty 
of  leisure  for  high  thinking  and  mental  improvement 
generally,  and  there  it  stops.  Some  novelists  have 
given  wings  to  their  imagination  for  visions  as  to  what 
might  be,  but  with  every  line  of  promises  there  must 
be  the  cold-blooded  question  as  to  how  it  is  to  be 
done  and  who  will  do  it,  for  which  no  answer  is  forth- 
coming aside  from  that  deep  and  dark  mystery  called 
government. 

But  how  account  for  the  fact  that  so  many  excellent 
people  above  any  suspicion  of  self-seeking  motives 
are  earnest  supporters  of  socialistic  ideas.  They  see 
the  evils  that  are  admitted,  and  are  convinced  that 


108  THE  GOSPEL  OF  GREED 

socialism  will  furnish  the  remedy.  Should  they  not 
be  credited  at  least  with  their  good  intentions? 

As  previously  explained,  intentions  do  not  count 
in  the  results.  A  policy  of  action  in  human  affairs 
will  work  out  precisely  the  same,  whether  the  promo- 
ters were  influenced  by  the  highest  type  of  philan- 
thropy or  a  murderous  spirit  of  destruction.  Socialism 
on  its  merits  would  make  but  little  headway,  because 
it  is  opposed  at  every  point  to  the  common  sense  of 
humanity.  The  danger  from  socialism  is  mostly  in 
the  fact  that  so  many  well-meaning  people  accept 
the  rainbow  promises  without  taking  the  trouble  to 
study  the  possibilities  of  performance.  Socialistic 
happiness  and  perfection  on  earth  are  accepted  in 
much  the  same  way  as  religious  beliefs  in  the  heavenly 
glories  of  the  hereafter.  Religious  belief,  however, 
easily  develops  into  the  frenzy  of  fanaticism  beyond 
all  control  of  reason,  with  the  rule  of  death  for  the 
unbelievers. 

The  amateur  socialists  in  the  excess  of  their  sym- 
pathy for  what  they  can  see  of  suffering,  easily  become 
religious  enthusiasts  in  favor  of  the  promised  changes 
and  fanatical  bigots  against  all  arguments  that  ques- 
tion the  object  of  their  devotion.  History  is  full  of 
records  of  the  actions  of  fanatics  with  the  best  inten- 
tions, who  preach  reforming  crusades  and  attract 
armies  of  followers.  The  leaders  demand  action  for 
reform  and  the  followers,  inflamed  by  the  vivid  stories 
of  their  wrongs,  proceed  to  wreak  summary  ven- 
geance, with  all  the  wild  animal  savagery  of  mob 
violence  and  destruction.  The  leaders  oppose  this 
action,  but  are  powerless  to  control  the  whirlwind  of 
passions  they  inflamed. 


PROFESSIONAL  AND  AMATEUR  SOCIALISM  109 

Denouncing  rulers  is  called  criticism,  but  weak 
minds  work  out  the  results  in  assassinations.  Ama- 
teur socialists  denounce  the  greed  of  commercialism 
and  the  terrible  robbery  which  should  be  reformed, 
but  the  followers  who  accept  the  teaching  will  not 
be  restrained  from  acting  for  the  ruin  and  destruction 
of  a  red  revolution. 

When  even  high  government  officials  feel  called 
upon  to  make  wholesale  attacks  on  industrial  leaders 
because  certain  evils  are  charged  against  a  few,  the 
results  in  paralyzing  industries  and  bringing  panic 
conditions,  with  all  the  misery  for  the  millions  of 
workers,  are  just  as  certain  and  positive  as  though 
the  attacks  were  made  by  a  foreign  enemy  for  inten- 
tional destruction. 

The  amateur  or  parlor  socialists,  as  they  have  been 
called,  profess  to  know  nothing  about  business  or 
commercialism,  although  without  the  support  from 
commercialism  these  thinkers  could  not  exist  without 
perforce  taking  their  places  in  the  ranks  of  the  labor- 
ers. They  see  a  few  individuals  with  evidences  of 
success  in  the  large  fortunes  accumulated,  and  forth- 
with class  these  as  robbers  on  the  absurd  assumption 
that  such  fortunes  could  not  be  acquired  honestly. 
Their  socialistic  zeal  for  reform  centers  on  these  for- 
tunes, and  they  tremble  for  the  liberties  of  the  people 
endangered  by  the  domination  of  such  fortunes. 

These  self-satisfied  authorities  know  nothing  of  the 
toil,  energy,  endurance  and  privation  which  laid  the 
foundations  for  the  fortunes,  or  the  work  of  building 
up  the  business  enterprises  which  the  fortunes  repre- 
sent. They  know  nothing  of  the  business  trials,  of 


110  THE  GOSPEL  OF  GREED 

the  times  when  credit  was  strained,  and  bankruptcies 
threatened,  if  indeed  assignments  were  not  made  and 
compromises  with  creditors;  nothing  of  the  losses 
from  blunders  of  employes,  to  say  nothing  of  occa- 
sional dishonesty;  nothing  of  the  hundreds  of  competi- 
tors who  started  on  equal  or  more  favorable  terms, 
but  who  failed  to  keep  up  and  went  down  with  big 
losses.  These  losses  for  the  failures  would  total  up 
to  as  much  or  more  than  the  fortunes  of  the  success- 
ful ones. 

If  it  is  decided  that  there  shall  be  a  limit  to  for- 
tunes, and  that  at  any  fixed  amount  a  man  must  stop 
accumulating  wealth,  what  does  it  really  mean?  Is 
it  not  that  the  business  enterprises  in  which  he  is 
engaged  must  be  suspended  or  else  turned  over  to 
less  competent  management?  Would  such  action 
benefit  the  public  as  consumers,  or  the  workers  as  em- 
ployes in  any  case? 

Taking  the  general  rule  and  not  the  exceptional 
cases,  why  do  some  men  accumulate  wealth  so  much 
faster  than  others?  Is  it  not  because  they  make  better 
use  of  the  capital  invested  for  better  results?  Invest- 
ors are  always  anxious  to  put  their  money  in  charge 
of  the  men  who  have  proved  their  ability  to  get  the 
best  results,  either  as  individuals  or  at  the  head  of 
big  corporations.  Best  results  mean  best  service  for 
the  public  whose  patronage  makes  the  business  and 
the  profits.  The  men  who  control  wealth,  speaking 
generally  again  and  allowing  for  the  exceptions,  are 
the  men  best  fitted  for  control,  because  they  give  the 
best  results  in  wealth  creation  and  corresponding 
profits. 


PROFESSIONAL  AND  AMATEUR  SOCIALISM  111 

When  Abraham  Lincoln  was  president,  he  had  an 
object  to  accomplish  in  ending  the  war.  He  had 
armies  of  fighting  men  and  a  good  outfit  of  generals. 
For  three  years  the  generals  were  using  the  soldiers 
and  working  in  what  was  equivalent  to  open  competi- 
tion. Finally  one  general,  named  Grant,  showed  some 
very  good  results  in  the  successful  campaign  at  Vicks- 
burg.  President  Lincoln  decided  that  Grant  was  mak- 
ing better  use  of  the  men  and  materials  than  the  other 
generals,  so  he  called  General  Grant  to  the  command 
of  all  the  armies.  That  is,  he  suppressed  competition 
and  made  General  Grant  a  trust  monopolist  in  the 
military  line,  with  the  results  as  known.  In  the  mean- 
time, it  will  also  be  remembered,  there  was  no  lack 
of  protests  from  other  generals  whose  opportunities 
for  glory  were  thus  cut  off.  In  fact  there  were 
patriots  who  demanded  more  power  for  interference, 
for  congressional  committees,  and  foresaw  a  military 
dictator  in  General  Grant,  with  the  usual  destruction 
of  the  liberties  of  the  people. 

In  the  industrial  world,  whether  railroading  or 
other  lines,  there  are  some  men  who  are  naturally 
qualified  for  developing  leadership.  They  have  the 
same  means  in  capital  and  labor  as  the  others,  but 
they  get  better  results.  The  investing  public,  in  place 
of  President  Lincoln,  recognize  the  ability  for  man- 
agement which  brings  the  results,  and  the  successful 
ones  are  given  control  of  more  capital  and  labor,  which 
is  withdrawn  by  failure  or  otherwise  from  those  who 
could  not  make  the  profitable  showing.  President 
Lincoln  wanted  the  war  to  end  with  victory.  The 
public  in  industrial  enterprises  want  the  best  service 


112  THE  GOSPEL  OF  GREED 

and  best  products  at  lowest  cost.  President  Lincoln 
rewarded  General  Grant  by  promotion  to  larger  com- 
mands. The  public  rewards  the  successful  industrial 
leaders  by  larger  patronage,  which  means  larger  vol- 
ume of  business  and  larger  profits. 

General  Grant,  with  his  monopoly  of  military  com- 
mand, had  the  power  to  destroy  the  Capitol  at  Wash- 
ington, wipe  out  cities  at  his  will,  and  enslave  the 
people.  Industrial  leaders  have  power  for  extortion, 
injury  and  destruction,  but  is  it  reasonable  to  argue 
or  even  to  fear  that  they  will  use  their  powers  in  this 
way?  When  General  Grant  was  in  command,  Presi- 
dent Lincoln  was  not  worried  by  any  fear  that  the 
armies  would  be  surrendered  to  the  enemy.  Is  it 
any  more  likely  that  industrial  leaders  who  have  won 
larger  control  because  of  their  ability  to  give  better 
service  to  the  public  would  turn  round  and  attack 
the  public  by  extortionate  methods,  which  would 
soon  give  the  control  to  others? 

In  short,  with  due  allowance  for  all  the  evils  proved 
or  suspected  against  a  few  individuals  in  control  of 
large  capital  or  corporate  interests,  is  there  not — in 
the  broader  view — an  immense  amount  of  humbug  in 
the  professed  fears  of  the  professional  fearers  for  the 
dangers  to  the  liberties  of  the  people  from  the  industrial 
leaders  who  have  won  the  commanding  positions  by 
their  ability  to  give  best  results  in  serving  the  public 
in  their  respective  lines? 


CHAPTER  XIII. 

THE  DESTRUCTIVE  SPIRIT  OF  SOCIALISM. 

The  Changes  of  Fifty  Years — What  Labor  Unions  Can  Do — 
The  Demand  for  Pulling  Down  no  Matter  What  Comes 
After — Greed  Wants  More,  but  Jealous  Envy  Would 
Destroy  All. 

To  sum  up  a  little  from  the  foregoing,  there  are  the 
facts  admitted  by  all  of  the  astonishing  development  in 
recent  years,  the  vast  increase  in  the  wealth  produc- 
tion, giving  more  to  be  divided,  and  the  great  im- 
provement in  the  material  conditions  of  human  ex- 
istence. The  common  sense  of  humanity  recognizes  all 
this,  and  is  willing  to  give  all  honor  to  the  individuals, 
acting  either  singly  or  in  combination,  who  made  the 
results  possible.  The  question  at  issue  is  on  the  dis- 
tribution of  this  wealth  created  so  that  all  may  have 
what  is  considered  to  be  a  fairly  equal  share. 

The  claim  of  the  reformers  is  in  effect,  that  the 
grand  benefits  from  the  increased  wealth  creation  are 
being  absorbed  by  the  capitalistic  robbers,  and  only 
a  few  of  them,  while  the  workers  who  produce  the 
wealth  are  being  crushed,  so  that  the  conditions  for 
them  are  really  worse  than  in  former  times  when 
there  was  no  such  concentration  of  wealth  for  the  rich 
few.  The  swollen  fortunes  are  a  gigantic  evil  that 
demands  reform,  etc. 

For  any  fair  investigation  along  this  line  it  is  neces- 
sary to  make  comparisons  to  find  out  how  conditions 
are  changed  or  changing.  Suppose  then  we  take  just 

(113) 


114  THE  GOSPEL  OF  GREED 

a  few  comparisons  for  fifty  years  back  or  during  the 
time  when  the  biggest  of  the  big  fortunes  have  been 
accumulating.  Can  any  one  question  the  value  of  the 
results?  With  inventions  and  organized  effort  the 
wealth  production  of  the  United  States  has  increased 
over  five-fold  in  three  decades.  Instead  of  the  oft- 
repeated  falsehood  that  the  rich  are  getting  richer  and 
the  poor  poorer,  there  are  the  facts  of  the  wonderful 
improvement  for  all,  such  as  would  not  have  been 
dreamed  of  half  a  century  ago.  Compare  the  con- 
ditions of  even  the  lowest  beggars  and  note  how  the 
ideas  have  been  changed.  Instead  of  the  poor  little 
pennies,  the  dry  crusts  and  the  bundles  of  straw  on 
cold  floors,  the  modern  beggars  expect  dimes  or  dollars. 
If  they  stand  in  the  bread  line  they  look  for  reasonably 
fresh  loaves  of  bread.  For  the  night  they  want  reason- 
ably good  tenements  with  sanitary  regulations,  and 
fairly  comfortable  beds  or  bunks  at  least. 

Note  for  example,  also,  the  numbers  engaged  in 
domestic  service,  without  unions  or  any  outside  pro- 
tecting influence;  how  do  the  wages  and  toil  in  this 
service  compare  with  fifty  years  ago?  Is  there  much 
evidence  of  robbing  the  toilers  there? 

Fifty  years  ago  the  ordinary  laborer  was  paid  one 
dollar  a  day  for  twelve  to  fourteen  hours,  with  many 
at  lower  wages.  For  money  or  capital,  on  the  other 
hand,  the  normal  interest  rate  was  10  to  12  per  cent 
and  business  or  industrial  profits  had  to  be  correspond- 
ingly more. 

At  present,  with  the  working  of  capitalistic  op- 
pression, the  same  class  of  laborers  get  three  dollars  a 
day  (or  over)  for  nine  or  eight  hours,  while  capital,  in 


THE  DESTRUCTIVE  SPIRIT  OF  SOCIALISM   115 

what  is  considered  safe  investments,  gets  less  than 
4  per  cent.  Does  this  show  oppression  for  labor  as 
compared  with  capital  or  not? 

Just  as  a  side  light  on  the  picture  of  the  oppression, 
try  to  imagine  labor  unions  organizing  fifty  years  ago 
with  even  a  fraction  of  their  present  demands.  Try 
to  imagine,  also,  a  delegation  of  labor  representatives 
going  to  the  British  Parliament  or  the  American 
Congress  fifty  years  ago  as  they  are  doing  now,  de- 
manding special  legislation  as  against  the  laws  to 
which  the  general  public  must  submit,  and  threatening 
dire  results  if  the  demands  are  not  granted.  Does 
the  contrast  show  more  oppression  or  not?  Suppose 
we  say  that  labor  forced  all  these  concessions  from 
unwilling  capitalists,  the  fact  remains  that  the  capital- 
ists had  the  increased  wealth  from  which  to  concede. 
Fifty  years  ago  capitalists  could  not  give  up  what 
they  did  not  have,  and  the  modern  demands  of  labor 
would  have  been  preposterously  impossible. 

Now  as  a  fair,  honest  question  for  any  reasoning 
human  being  to  answer  candidly:  Is  this  change  in 
the  conditions,  with  the  larger  volume  of  wealth  to  be 
divided  up,  due  in  any  sense  whatever  to  any  action 
of  labor  or  labor  combinations  or  socialistic  advisers? 
Is  it  not  a  fact,  beyond  all  dispute,  that  the  inventions, 
the  machinery,  the  methods,  the  systems  and  the 
combinations  for  increasing  the  wealth  production 
were  introduced  by  the  capitalistic  management  and 
opposed  at  every  step  by  the  labor  champions  as  de- 
structive to  the  interests  of  labor? 

No  one  can  rightly  blame  labor  or  labor  organiza- 
tions for  trying  to  get  more.  The  same  greed  for  gain 


116  THE  GOSPEL  OF  GREED 

or  desire  for  better  things  in  their  case  works  for  better 
conditions  of  living  and  general  progress  for  humanity. 
The  only  criticism  must  be  against  demanding  more 
than  it  is  possible  to  give,  or  interfering  in  the  manage- 
ment of  the  employing  concerns.  Unless  the  capitalists 
can  find  means  for  creating  more  wealth  they  cannot 
give  up  more.  In  non-progressive  industries  or  non- 
progressive  countries  profits,  as  well  as  wages,  must  be 
stationary,  because  all  the  powers  of  all  the  combina- 
tions cannot  get  something  out  of  nothing.  That 
can  come  only  from  the  creative  genius  of  the  inventors 
or  managers  which  is  stimulated  by  the  same  old  greed 
for  gain  and  the  reward  of  big  fortunes.  The  more 
intelligent  of  the  labor  union  leaders  are  coming  to 
a  better  understanding  and  recognition  of  this  common- 
sense  business  principle,  and  are  using  all  their  power 
to  prevent  unreasonable  demands,  as  well  as  the  waste- 
ful and  destructive  strikes  which  leave  just  so  much 
less  wealth  to  be  divided  up.  In  ordinary  conditions, 
without  the  improvements,  there  is  the  automatic 
adjustment  of  profits  and  wages;  and  if  labor  insists 
on  too  much  the  business  must  stop  either  voluntarily 
or  by  the  action  of  the  sheriff. 

Some  of  the  modern  socialistic  authorities — with 
intelligence  enough  to  condemn  the  enforced  equality 
ideas  on  the  penitentiary  model  of  tag  numbers, 
rations,  striped  uniforms  and  cells  as  the  best  system 
for  humanity — still  rail  against  the  big  fortunes  and 
the  profits  of  the  greedy  capitalists.  They  admit  the 
immense  advantages  of  the  present  social  organization 
and  would  simply  replace  the  capitalists  by  govern- 
ment officials  as  directors.  These  directors,  they  say, 


THE  DESTRUCTIVE  SPIRIT  OF  SOCIALISM  117 

might  be  elected  for  each  industry  by  the  workers,  or 
they  might  be  appointed  by  the  ruling  authorities. 
They  would  have  the  factories  and  farms,  the  stores 
and  storekeepers,  the  transportation  all  the  same, 
but  all  would  be  at  cost  with  no  profits.  The  detail  of 
this  plan  as  set  forth  is,  that  the  workers  shall  take 
possession  by  a  revolutionary  movement  throwing  the 
capitalists  out,  on  the  theory  that  the  latter  have 
robbed  long  enough  and  must  be  satisfied  with  what 
they  have  previously  stolen. 

Where  will  the  profits  go? 

The  answer  would  depend  on  the  audience.  If 
talking  to  workers,  the  profits  will  go  to  more  wages; 
if  to  the  general  public,  the  profits  will  all  go  to  the 
buyers  in  lower  prices.  Anything  to  please  or  humbug. 

Then  how  will  the  establishments  be  run  for  the 
buying  and  selling,  or  how  about  new  industries  that 
are  constantly  starting  up  with  new  products  in  new 
lines,  or  how  about  improvements  or  developments 
generally.  Then  there  is  the  trifling  matter  of  the 
election  or  appointment  of  the  outfit  of  managers, 
superintendents,  foremen,  bosses,  etc.,  needed  in  every 
industry.  Would  these  officials  look  more  to  promot- 
ing improvements  or  to  scheming  to  hold  their  po- 
sitions against  the  pressure  from  the  common  workers 
to  get  in?  How  will  it  all  be  arranged  for? 

Oh,  these  are  simply  questions  of  detail  that  will 
be  managed  somehow  by  the  government,  and  it 
won't  matter  much  anyway  so  long  as  we  get  rid  of 
the  capitalistic  robbers  and  their  fortunes  which  they 
flaunt  in  our  faces. 

This  is  in  effect  the  demand  from  some  of  the  high- 


118  THE  GOSPEL  OF  GREED 

thinking,  superior  beings  who  so  contemptuously 
denounce  the  sordid,  soul-destroying  greed  of  com- 
mercialism and  the  hog  nature  of  the  millionaires! 

There  are  varieties  of  socialism  and  socialists, 
all  professing  philanthropic  motives  and  grand  ideas 
for  uplifting,  but  one  and  all  agree  that  there  must 
first  be  a  pulling  down.  Through  all  the  variations 
of  socialism,  down  to  bomb-throwing  anarchy,  the  one 
characteristic  common  to  all  is  jealous  envy  of  the 
more  successful.  Some  point  at  the  multi-millionaires 
while  others  rail  at  the  smaller  fortunes  and  include 
all  the  people  who  live  comfortably  in  the  general  con- 
demnation of  predatory  wealth  and  the  criminal  rich. 
The  underlying  motive  for  all  the  pretended  philan- 
thropy is  this  envy,  the  meanest  and  lowest  of  all 
human  passions.  From  this  jealous  envy  comes  the 
mad  impulse  that  would  destroy  without  limit,  and 
plunge  itself  into  the  common  ruin,  in  order  to  work 
injury  to  the  object  of  its  spite.  The  vitriol  thrower  and 
the  assassin  sacrifice  all  to  the  hate  for  the  victims, 
and  the  socialistic  haters  of  all  degrees  find  congenial 
brotherhood  in  the  anarchist  destroyers  with  their 
torches  and  bombs. 

Greed  in  its  meanest  manifestations  is  a  grand 
virtue  in  comparison.  Greed  wants  more  and  tries 
to  get  more,  but  it  never  seeks  to  destroy.  It  is  es- 
sentially constructive  in  its  efforts  to  get  more  and 
keep  more,  and  the  victims  of  its  worst  oppression  are 
permitted  to  live.  In  the  worst  phases  of  the  alleged 
capitalistic  robbery  of  labor  there  is  something  given 
to  the  workers,  generally  more  than  they  were  getting 


THE  DESTRUCTIVE  SPIRIT  OF  SOCIALISM    119 

before,  and  there  is  a  positive  wealth  production  that 
must  be  of  general  benefit. 

The  jealous  envy  of  anarchy  and  socialism  will  not 
tolerate  questions  concerning  details  or  results,  but 
demands  the  overturn  and  destruction  first,  after 
that  the  deluge  or  anything  that  may  come.  The 
old  cry  of  "Death  to  the  aristocrats"  is  changed  to 
"Damn  the  rich,"  and  the  howling  mob  follows.  What 
other  human  passion  would  inspire  the  Karl  Marx 
declaration : 

"We  content  ourselves  at  present  with  laying  the  founda- 
tions of  revolutions,  and  shall  have  deserved  well  when  we  shall 
have  excited  hatred  and  contempt  for  all  existing  institutions. 
We  wage  war  against  all  prevailing  ideas  about  religion,  country, 
state  and  patriotism." 

This  is  the  theory  and  promise  of  socialism.  De- 
struction always,  progress  never. 
*-P  There  is  a  jealous,  hog  nature  that  would  overturn 
the  trough  for  all  rather  than  see  some  get  a  little 
more.  In  comparison  with  this  there  is  positive 
merit  in  the  greedy  hog  who  will  squeal  for  more  sup- 
plies in  the  trough  even  if  he  crowds  the  others  a  little 
when  the  feed  comes.  Some  well-meaning  individuals 
may  be  misled  by  the  socialistic  visions,  but  the  facts 
remain  and  the  eternal  verities  cannot  be  changed. 


CHAPTER  XIV. 

SYSTEM  OF  THE  NATURAL  ORDER. 

Infinite  Variety  Everywhere  and  Use  of  Brain  Power — Example 
of  the  Great  Steamship — How  the  Equality  Theories  Must 
Work  in  Practice. 

It  must  be  evident  to  any  one  who  will  give  any 
attention  to  the  facts  of  human  history  that  the  creative 
power  of  wealth  production  is  in  the  brains  and  not 
the  brawn  of  humanity.  Even  in  the  animal  kingdom 
the  instinctive  brain  action  of  the  smaller  species  is  a 
protection  against  the  muscular  power  of  the  larger. 
There  is  the  proverbial  cunning  of  the  fox,  the  wariness 
of  the  wolf  and  the  fleetness  of  the  deer  in  contest  with 
their  natural  enemies  on  one  hand,  or  their  natural 
prey  on  the  other.  Why  were  all  these  conditions  so 
ordained?  Why  do  the  wild  animals  gather  in  herds 
with  the  acknowledged  leaders  to  whom  the  others 
submit?  Just  think  along  this  line  for  a  moment  of 
the  merciless  cruelty  of  the  struggle  for  existence  in 
the  air,  on  the  land  and  in  the  seas.  And  then  comes 
man,  the  ruthless  and  reckless  slayer  and  destroyer 
of  all  the  lower  orders. 

The  normal  human  being  finds  beauties  in  nature 
and  sees  the  lower  orders  disporting  themselves  in 
evident  content.  As  he  learns  more  of  the  infinite 
variety,  the  exquisite  details,  the  adaptation  of  each 
for  all,  the  systematic  arrangement  of  every  form  of 
life  and  every  atom  of  matter,  he  is  lost  in  wonder  and 
admiration  for  the  Supreme  Ruling  Intelligence  that 

(120) 


SYSTEM  OF  THE  NATURAL  ORDER         121 

created  all.  But  there  are  other  super-sensitive  souls 
who  are  blind  to  all  the  beauties  and  perfections,  and 
see  only  the  horrors  of  the  killing  and  devouring. 
They  grieve  and  mourn,  and  if  they  could  have  their 
will  would  recreate  the  world. 

In  human  affairs  the  same  abnormal  fault  finders 
seek  out  cases  of  evil  and  injustice  while  ignoring  all 
that  is  honorable  and  sympathetic,  and  all  that  makes 
for  the  comfort  and  happiness  of  the  whole.  They 
deplore  the  inequalities.  Some  succeed  while  others 
fail,  and  the  good  things  of  life  are  not  fairly  distributed. 
So  they  would  have  a  dead  level  of  uniformity.  They 
would  have  the  earth's  surface  a  flat  plain  with  one 
kind  of  vegetation  and  one  kind  of  animal  life  with  no 
devouring  of  one  kind  by  another.  Then  there  would 
be  one  type  of  human  beings,  equal  physically  and 
mentally  and  content  with  existence  like  a  herd  of 
cattle. 

This  idea  may  be  attractive  for  some,  but  whether 
for  good  or  bad,  the  Creator  of  the  Universe  did  not 
ordain  it  so,  and  as  the  finite  minds  of  even  reformers 
have  no  omnipotent  powers,  the  infinite  diversity 
with  all  the  varied  and  varying  conditions  will  remain 
for  all  vegetable,  animal  and  human  existence. 

But  there  is  another  view.  The  reformers  rage  at 
the  inequalities.  Why?  Because  they  think  they 
are  not  getting  their  share  while  others  are  getting  too 
much. 

What  is  the  name  for  this  feeling?  Is  it  not  plain 
envy  or  jealousy? 

What  do  the  reformers  promise?  Why,  to  make 
a  redistribution,  that  is  take  from  those  who  have  and 
give  to  those  who  have  not. 


122  THE  GOSPEL  OF  GREED 

What  would  this  be  termed  in  ordinary  affairs? 
Why,  just  plain  greed  of  the  criminal,  robber  variety. 

Then  the  truth  is  that  the  reformers  make  their 
appeals  to  the  envy  and  greed  of  the  have-nots  for  the 
ostensible  object  of  punishing  the  greed  and  arrogance 
of  those  who  have.  In  other  words  all  the  high  minded 
pretentions  of  benefit  to  humanity  are  nothing  more 
nor  less  than  reverting  back  to  the  animal  savagery  of 
taking  everything  in  sight  that  the  possessors  cannot 
defend  or  protect.  And  this  is  the  so-called  remedy 
for  the  evils  of  sordid  greed! 

If  a  real  reform  is  desired  for  humanity  would  it 
not  be  much  better  to  attack  and  eliminate  envy  and 
jealousy,  which  are  always  destructive  without  regard 
for  consequences,  than  to  undertake  to  do  away  with 
greed  which  is  essentially  constructive  and  works  for 
better  results? 

But  what  is  the  application  of  all  this?  What  has 
it  to  do  with  economic  principles?  Simply  this.  The 
inspiration  or  moving  force  for  all  that  has  come  in 
the  way  of  benefits  to  humanity  is  greed  for  gain. 
The  opposing  force  that  has  hindered  or  blocked  im- 
provements all  the  way  through  is  the  envy  that  would 
pull  down  the  successful  ones  or  prevent  their  gaining 
some  share  of  reward  for  the  improvements  they  in- 
troduced. Animal  instinct  in  the  herd  rewards  the 
victor  in  the  contest  for  leadership,  and  science  says 
that  this  is  the  basis  for  the  theory  of  evolution  by 
the  survival  of  the  fittest.  Human  reformers  say  that 
the  victors  in  the  contests  for  leadership  must  be 
condemned  or  destroyed,  and  the  control  given  over 
to  the  vanquished  or  less  competent.  Which  is  the 


SYSTEM  OF  THE  NATURAL  ORDER         123 

more  reasonable,  and  which  idea  will  work  out  the 
better  results? 

Here  is  a  great  steamship  moving  in  defiance  of  the 
hurricane  fury  of  wind  and  waves.  With  all  its 
splendid  outfit  and  furnishings  it  may  be  taken  as  a 
superlative  expression  of  the  result  of  human  creative 
intelligence.  From  the  preparation  of  the  materials 
to  the  planning  and  building  of  the  ship,  the  motive 
power,  the  organization  and  discipline  of  the  crew, 
the  service  provided  for  passengers  and  the  command 
of  the  captain  in  control  there  is  the  development  of 
the  best  intelligence  and  co-operative  effort.  The 
captain  in  command  is  an  example  of  the  possibilities 
of  human  power.  The  great  ship  with  all  that  it 
contains  responds  to  his  slightest  wish  and  obeys  his 
every  order. 

As  the  great  steamship  holds  its  onward  course 
with  all  its  power  there  is  seen  on  the  face  of  the  waters 
a  tiny  speck  which  is  found  to  be  a  human  being 
afloat  on  a  rude  raft. 

Here  is  the  contrast  between  savagery  and  civiliza- 
tion. Is  the  steamship  a  benefit  to  humanity  as  com- 
pared with  the  log  raft  or  not? 

The  savage  on  his  raft  who  was  rescued  from  de- 
struction is  physically  equal  if  not  superior  to  the 
captain.  He  worked  harder  in  paddling  his  raft  than 
the  captain  did  in  moving  the  levers  to  give  his  orders. 
So  according  to  the  socialistic  formulas  he  should  re- 
ceive more  for  his  labor  than  the  steamship  captain 
who  is  responsible  for  the  safety  of  hundreds  of  pas- 
sengers and  millions  in  value  of  cargo. 

Then  consider  the  steamship  as  a  small  world  of 


124  THE  GOSPEL  OF  GREED 

itself.  The  captain  issues  peremptory  orders  and  dis- 
cipline is  maintained  with  each  at  his  place  down  to  the 
coal  passers  who  feed  the  furnaces.  The  passengers 
know  nothing  of  managing  the  ship,  but  some  of  them 
have  great  sympathy  for  the  deck  hands  and  the  coal 
heavers  who  are  forced  to  obey  orders  and  toil  to  the 
limit  at  their  tasks.  These  passengers  have  confer- 
ences to  denounce  the  tyranny  of  the  captain  and  the 
officers.  They  tell  the  deck  hands  and  the  coal  heavers 
that  the  ship  could  not  be  navigated  without  their 
services.  The  captain  simply  orders,  while  they  supply 
the  real  power  that  runs  the  ship.  Why  should  they 
submit  to  the  oppression  of  the  captain  and  officers? 
Why  not  mutiny,  take  possession  of  the  ship  and  throw 
the  officers  overboard?  Then  hoist  the  signal: 

"All  running  of  ships  is  the  work  of  the  crews. 
All  ships  should  belong  to  the  runners  thereof." 

Suppose  that  the  crew  act  on  this  suggestion  and 
the  ship  is  left  without  intelligent  control  to  face  the 
storms  and  hold  its  course  clear  from  rocky  coasts, 
what  do  the  sympathetic  passengers  gain  and  how 
much  are  the  crew  benefitted  when  the  inevitable 
shipwreck  comes?  The  tyrannical  captain  is  gone,  and 
the  crew  are  relieved  from  supposed  oppression,  but 
for  what  good? 

It  is  a  rather  serious  problem  at  present  to  determine 
as  to  how  far  the  ship's  crews  and  the  industrial  workers 
are  likely  to  be  influenced  by  such  counsel,  and  how 
far  they  will  go  in  supporting  measures  that  must 
surely  work  for  their  own  misery  and  destruction. 


CHAPTER  XV. 

GOVERNMENTAL  POLICIES. 

Welfare  of  the  People  Means  Wealth  Production  and  Security 

of  Possession — The  Basic  Principles  that  Must  Govern — 

p|j   How  Progress  is  Promoted — Practical  Political  Economy. 

The  primary  object  of  all  government  is  to  promote 
the  welfare  of  the  people.  The  most  despotic  as  well 
as  the  most  liberal  forms  agree  in  this  particular,  but 
there  is  a  never  ending  procession  of  questions  as  to 
how  this  is  to  be  done  or  what  shall  be  done  for  the 
particular  occasion.  Political  economists  have  puzzled 
through  volumes  to  formulate  principles  which  may 
be  taken  as  a  basis  to  work  from,  and  yet,  as  has  been 
shown,  the  results  from  particular  policies  do  not  come 
out  as  expected.  The  arguments  of  the  authorities 
are  logical  and  convincing,  but  the  human  element  is 
perverse  and  eratic  beyond  the  power  of  estimating. 

But  there  surely  must  be  some  general  principles 
that  are  basic  and  unchangeable.  What  constitutes 
the  prosperity  or  welfare  of  the  people  and  how  is  it 
promoted? 

The  welfare  of  the  people  first  of  all,  means  ex- 
istence with  food,  clothing  and  shelter.  The  essentials 
for  this  existence  come  from  the  changes  of  materials 
in  their  natural  condition  to  the  forms  suitable  for  use, 
which  change  is  termed  creation  of  wealth.  Some- 
times the  forces  of  nature  fail,  so  that  there  is  a  lack 
of  food  or  vegetable  products  with  the  result  of  threat- 
ened or  actual  famine,  but  in  general,  the  wealth  sup- 

(125) 


126  THE  GOSPEL  OF  GREED 

ply  depends  on  human  efforts.  The  more  there  is 
thus  created  the  more  there  will  be  to  divide,  and  the 
more  the  general  welfare  will  be  promoted.  So  it 
follows  that  the  prosperity  of  the  people  depends  on 
the  industrial  production  which  in  turn  means  em- 
ployment and  earnings  for  the  largest  amount  of  labor 
which  will  turn  out  the  largest  amount  of  wealth. 

This  is  all  clear  and  easy  enough,  but  how  will  the 
labor  be  employed  or  directed? 

In  this  simple  question  is  involved  practically  the 
whole  science  of  government  or  political  economy,  and 
the  answer  is  the  problem  of  humanity. 

It  will  do  no  harm  to  repeat  to  some  extent  in 
reiterating  the  points  to  be  considered. 

There  are  the  extremes  of  paternal  government 
direction  and  control  on  one  hand,  and  individual 
freedom  of  action  on  the  other.  Through  long  ages 
the  idea  has  prevailed  that  the  rulers  should  undertake 
to  provide  or  regulate  this  employment,  and  it  is  only 
in  more  recent  years  that  the  individuals  have  had 
a  chance  to  show  what  they  could  do.  The  despotic 
idea,  now  revived  by  the  socialistic  theories,  holds  that 
the  government  is  all-wise  while  the  people  are  all 
fools  who  must  be  controlled  and  provided  for. 

During  centuries  of  Christian  influence  a  perversion 
of  the  Christian  teaching  was  a  fierce  condemnation 
of  greed.  Of  course,  greed  remained  with  all  its  worst 
manifestations  for  the  rulers,  and  even  for  the  teachers, 
but  greed  for  the  common  people  was  supreme  wicked- 
ness. The  greed  thus  condemned  included  all  desire 
for  better  things  or  better  conditions.  Keep  to  your 
station  in  life  as  ordained  by  the  Divine  Will,  and  in 


GOVERNMENTAL  POLICIES  127 

the  class  where  you  belong,  with  due  humility  and 
respect  for  your  superiors.  Be  content  with  your  lot 
and  thankful  for  favors  received.  Such  was  the  con- 
stant admonition. 

Many  of  the  older  despotisms  did  their  best  to 
develop  industries  and  often  with  very  good  results. 
But  there  was  no  freedom  of  opportunity.  The  work 
was  ordered  and  individuals  chosen  for  management 
in  substantially  the  same  way  that  the  socialists  pro- 
pose as  their  last  new  discovery  in  human  affairs. 
There  was  always  the  idea  of  government  control,  on 
the  theory  that  the  workers  or  the  traders  could  not 
be  trusted.  Companies  or  favorites  were  granted 
exclusive  rights  or  monopolies  in  different  lines,  and 
business  was  farmed  out,  so  to  speak,  to  the  favored 
few.  Small  traders  were  treated  as  quasi  criminals 
to  be  watched  and  detected.  Laws  were  enacted 
regulating  retail  prices  of  commodities,  weights  and 
measures  to  be  served,  wages  to  be  paid,  character  of 
the  product,  and  all  manner  of  annoying  details.  Up 
to  1820  England  had  over  two  thousand  laws  enacted 
to  regulate  the  details  of  commerce  and  trading,  and 
the  results  in  almost  every  case  proved  evil  instead 
of  good.  The  laws,  by  the  way,  were  particularly 
severe  against  partnerships  and  corporations  which, 
it  was  assumed  were  conspiracies  for  plunder.  The 
underlying  idea  of  it  all  was  to  cut  down  profits  for 
the  benefit  of  the  people  as  buyers  or  consumers. 

But  common  sense  finally  prevailed  over  stupidity, 
for  the  people  learned  the  lesson  that  they  must  be 
producers  or  earners  before  they  could  be  buyers  or 
consumers,  and  that  the  meddlesome  laws  which 


128  THE  GOSPEL  OF  GREED 

attacked  and  repressed  productive  effort  meant  ruin 
for  the  whole  instead  of  benefit.  Most  of  the  antiquated 
laws  were  repealed  in  England  by  1825,  but  it  was  not 
until  1844  that  full  freedom  of  association  for  corpora- 
tions was  granted.  Since  then  the  spirit  of  com- 
mercialism has  been  free  to  work  out  the  grand  results 
to  the  limit  of  its  ability.  Instead  of  repression  and 
disfavor,  moreover,  industrial  leaders  have  been  com- 
mended for  success  and  specially  honored  with  aristo- 
cratic titles. 

The  United  States  had  much  the  same  conditions 
as  in  England.  The  colonial  governments  all  had 
their  restrictive  laws  for  business  dealings,  but  these 
gradually  fell  into  disuse,  and  the  English  lead  was 
followed  in  giving  the  largest  freedom  for  industrial 
development.  There  was  an  additional  incentive  here 
from  the  fact  that  with  no  clearly  defined  distinctions 
of  classes,  the  highest  honors,  socially  and  politically, 
were  open  for  all  who  could  prove  themselves  worthy. 
The  same  old  greed  for  gain  was  thus  encouraged  to 
the  utmost.  The  bigger  the  fortunes  of  the  successful 
ones  the  greater  the  stimulus  for  others  to  follow. 
The  results  as  we  have  them  are  known  to  all. 

Industrial  leaders  whose  work  has  so  uplifted 
humanity,  and  men  of  intelligence  generally  must 
wonder  how  the  results  that  are  so  apparent  can 
possibly  be  ignored  and  made  to  appear  so  different. 
They  wonder  why  reasoning  beings  will  close  their 
eyes  to  the  facts  of  the  stupendous  values  created, 
and  seek  only  for  the  defects.  They  wonder  also  at  the 
prospect  of  harking  back  to  the  days  of  old  King 
George  for  some  of  his  legislation  to  suppress  wealth 


GOVERNMENTAL  POLICIES  129 

production  by  treating  all  producers  and  traders  as 
criminals.  Modern  socialistic  reformers  would  do 
better  and  go  further  back  to  the  good  old  robber 
barons  who  knocked  wealth  producers  on  the  head, 
and  took  the  wealth  without  further  ceremony. 

Is  that  the  kind  of  a  change  that  the  people  want? 
It  is  the  kind  that  is  demanded,  and  much  of  the  recent 
legislation  is  along  this  line.  Railroads  are  attacked 
and  punished  by  bills  for  rate  reductions  and  injurious 
restrictions.  Big  corporations  are  also  attacked  with 
charges  of  extortion  and  excessive  profits,  and  there 
is  the  wholesale  denunciation  of  predatory  wealth  and 
the  criminal  rich.  There  are  also  threats  of  con- 
fiscation argued  and  supported  with  all  old-time 
ignorance  and  stupidity  of  the  Lord's  anointed 
despots. 

The  province  of  government  is  first  of  all  to  give 
protection  for  the  wealth  produced,  for  no  one  will  toil 
without  some  certainty  of  a  reward.  It  is  well-known 
that  many  parts  of  the  earth,  specially  favored  by 
nature  with  abundance  of  materials  for  wealth  pro- 
duction, are  industrial  deserts,  because  this  government 
protection  is  lacking.  In  some  cases  the  officials,  such 
as  they  are,  have  socialistic  ideas  about  swollen  fortunes, 
and  confiscate  wherever  they  find  anything  worth 
taking,  which  effectually  suppresses  industry  or  wealth 
creation. 

Next  to  protection  for  property  comes  the  freedom 
for  all  to  work  out  their  own  ideas  either  singly  or  in 
any  form  of  combination  that  will  promise  the  largest 
profits,  which  means,  of  course,  the  largest  results  in  the 
value  of  wealth  produced.  It  has  been  clearly  shown 


130  THE  GOSPEL  OF  GREED 

that  the  creation  of  wealth  depends  always  on  the 
initiative  of  the  individual,  and  so  the  largest  oppor- 
tunities should  be  given,  no  matter  how  the  fortunes 
may  pile  up.  If  combinations  large  or  small  can  do 
better  than  individuals,  then  by  all  means  let  the 
combinations  do  their  best,  for  however  big  the  totals 
may  look  the  wealth  will  all  be  distributed  in  some 
way.  The  few  cannot  consume  it  all. 

In  the  same  line  and  to  secure  the  best  results  it 
must  be  the  duty  of  the  government  to  provide  equal 
opportunities  for  all.  The  general  laws,  while  inter- 
fering as  little  as  possible  with  the  business  activities, 
must  see  to  it  that  individuals  or  combinations  or 
classes  will  not  have  unfair  advantages  over  others. 
This  does  not  mean,  as  too  often  assumed,  that  the 
progressive  concerns  who  gain  a  leadership  must  be 
held  back  or  handicapped  to  favor  the  less  enter- 
prising, but  only  that  all  shall  have  an  equal  chance. 
The  race  must  be  to  the  swift  and  the  battle  to  the 
strong  until  the  end  of  time,  but  the  start  should  be 
even  and  the  weapons  fairly  equal.  This  principle  is 
the  basis  for  laws  relating  to  common  carriers  or  to 
public  service  corporations,  but  new  concerns  must 
be  free  to  offer  better  service  if  they  can.  Sometimes 
monopolies  are  advisable,  as  for  example,  the  toll 
roads  maintained  by  corporations  in  districts  where 
the  government  revenues  are  insufficient  for  the  proper 
care  of  public  highways.  So  there  are  political  reasons 
for  government  postal  service  aside  from  questions  of 
economy  or  possibly  more  efficient  service  with  private 
control. 


GOVERNMENTAL  POLICIES  131 

The  common  mistake  is  to  assume  that  the  govern- 
ment should  not  only  provide  for  an  equal  -start  and 
equal  opportunities,  but  that  it  should  also  aim  to 
hold  the  contestants  to  the  same  pace  or  fairly  equal 
results.     But  this  would  necessarily  mean  a  halt  for 
all   progress,   because  improvements  can   come  only 
from  the  ideas  of  individuals  who  expect  some  ad- 
vantage for  the  same.    The  rewards  in  fortunes,  or 
the  very  inequalities  complained  of,  are  the  stimulus 
for  all  the  improvements  which  ultimately  must  go 
for  the  benefit  of  humanity,  and  which  taken  together 
make  the  progress  of  civilization.     If  there  was  nothing 
to  be  invented  there  might  be  some  reason  in  the  idea 
of  an  appoximate  to  an  enforced  equality,  but  with 
the  possibilities  open  it  is  for  the  public  good  and  the 
general  welfare  to  have  the  system  of  reward  open 
for  all,  leaving  the  inequalities  to  correct  themselves 
by    the    continuing    changes.     There    is    a    certainty 
furthermore  that  any  system  of  repression,  no  matter 
how  it  may  be  organized,  must  give  such  powers  to  the 
rulers  that  they  will  prepetuate  their  authority  and 
maintain  inequalities  by  holding  all   that  is  desirable 
for  themselves. 

Another  feature  to  be  well  considered  in  govern^ 
mental  affairs  or  policies  is  that  while  the  creative 
genius  is  given  to  few  human  beings  the  power  for 
destruction  is  common  to  all.  The  masterpieces  of 
painting  or  sculpture,  the  splendid  building  structures 
or  the  more  useful  factory  establishments  for  produc- 
tion, together  with  all  forms  of  the  wealth  produced, 
with  all  the  labor,  energy  and  creative  genius  in- 
cluded, can  all  be  wiped  out  by  the  dense  ignorance  or 


132  THE  GOSPEL  OF  GREED 

crazed  jealousy  of  the  anarchist  with  his  torch  and 
bomb.  So  in  the  matter  of  legislation  a  fanatical 
reformer  may  easily  prevail  on  unthinking  associates 
to  enact  measures  that  will  paralyze  industries  and 
work  more  wide-spread  ruin  than  the  dynamiter  with 
his  bombs. 

In  the  industrial  world  there  are  times  of  booming 
confidence  with  all  the  industries  stimulated  for  in- 
creased production,  prices  advancing  with  more  em- 
ployment and  larger  earnings  for  labor,  and  the  largest 
measure  of  prosperity  for  all.  Then  comes  a  rumor 
or  an  unfavorable  incident  or  a  threat  of  some  kind 
aimed  at  the  leaders.  At  once  there  is  doubt  and  hesi- 
tation. Each  aims  to  protect  himself  against  the 
threatened  danger  and  a  panic  is  started  which  sweeps 
millions  to  destruction  and  brings  untold  misery  and 
suffering.  There  are  the  same  people  with  the  same 
conditions,  the  same  natural  resources  and  the  same 
capacity  for  wealth  production,  but  in  a  day  all  is 
changed  as  to  the  results.  The  workers  are  as  willing 
and  faithful  as  ever,  the  number  of  consumers  is  the 
same,  but  the  human  element  asserts  itself.  The 
leaders  are  terrorized,  and  the  instinct  of  self-preserva- 
tion forces  halting  and  shut-downs,  with  less  employ- 
ment for  labor,  lower  wages,  reduced  consumption 
and  all  the  misery  of  hard  times. 

The  fanatics  or  reformers  are  astonished.  They 
never  intended  such  results.  They  sought  only  to 
benefit  the  unfortunates  who  were  getting  less  than 
some  of  the  others.  They  wanted  only  to  check  some 
of  the  leaders  who  as  it  seemed,  were  abusing  their 
powers.  But  the  mine  explodes  and  the  conflagration 


GOVERNMENTAL  POLICIES  133 

destroys  just  the  same.  When  the  leaders  who  have 
proved  their  ability  for  leadership  through  the  life  and 
death  struggle  of  competition  are  threatened  or  thrust 
aside  what  must  become  of  the  thousands  of  followers 
whose  well-being  and  lives  are  committed  to  such 
leadership?  Some  of  the  fanatics  will  not  be  convinced 
even  by  the  results.  They  say  that  the  disasters  will 
be  a  benefit  in  giving  freedom  to  the  followers  from 
the  tyranny  of  such  leadership.  The  followers  have 
been  free  to  start  out  for  themselves  at  any  time,  but 
they  found  better  results  from  the  superior  ability  of 
the  leaders,  and  were  generally  content.  The  reformers 
insist  that  this  was  all  wrong,  and  the  socialist  cult 
propose  as  an  improvement  to  replace  the  leaders  by 
making  themselves  government  officials  with  supreme 
powers  for  ordering  all  the  details,  and  enforcing  a 
tyranny  away  beyond  anything  that  was  possible  for 
the  former  leaders  who  could  hold  their  positions  only 
so  long  as  they  give  better  results  to  their  followers. 
It  must  be  remembered  always  in  considering 
policies  for  governmental  action  that  the  leaders  are 
comparatively  few,  and  that  while  they  may  be  daring 
enough  in  planning  and  undertaking  great  entreprises, 
yet  just  in  proportion  as  they  are  placed  in  control 
of  larger  interests  they  must  be  more  cautious  for 
safeguarding  the  same  against  losses.  It  is  easy  enough 
to  excite  the  mob  against  the  millionaires  and  threaten 
all  kinds  of  attacks.  The  millionaires  may  have 
courage  enough  personally,  but  they  must  in  ordinary 
prudence  aim  to  protect  the  interests  they  represent. 
The  example  of  one  influences  others  all  along  the  line, 
and  so  the  blow  falls  with  crushing  effect  on  the  work- 


134  THE  GOSPEL  OF  GREED 

ers  who  are  thrown  out  of  employment  by  the  orders 
for  reduction  and  cutting  down  expenses  necessary 
to  keep. on  the  safe  side. 

The,  conclusion  as  far  as  the  question  of  directing 
the  employment  for  wealth  production  to  promote  the 
common  welfare  according  to  any  reasonable  view 
of  humanity  and  human  conditions,  must  be: 

First — No  human  being  or  special  selection  of 
human  beings  who  ever  lived  or  are  ever  likely  to  exist, 
can  have  wisdom  enough  to  direct  the  affairs  and 
actions  of  all  other  human  beings. 

The  whole  is  greater  than  any  of  its  parts,  and 
everybody  knows  more  than  anybody. 

Second — To  get  the  largest  and  best  results  in 
creation  of  wealth  for  the  welfare  of  the  people,  re= 
move  all  restrictions  or  domination  by  any  rulers  or 
assumed  leaders,  and  give  the  largest  freedom  for  good 
old  greed  for  gain  to  work  out  the  results,  with  fortunes 
for  reward  of  success,  if  need  be,  beyond  the  dreams  of 
avarice. 

The  bigger  the  fortunes  the  bigger  must  be  the 
benefits  of  which  they  are  the  measure. 

Third — Do  not  let  little  foot  hills  of  evils  obscure 
grand  mountains  of  benefit.  Extortion  or  oppression 
at  one  point  means  surely  and  quickly  more  liberal 
offerings  and  more  opportunities  at  another. 

The  great  dominating  force  of  the  higher  greed  in 
the  many  will  find  remedies  for  the  evils  from  the 
meaner  greed  of  the  few,  and  progress  will  not  go 
backward. 


CHAPTER  XVI. 

THE  TARIFF  QUESTION. 

The  Principles  Involved  and  How  Wealth  Creation  is  Affected 
— The  Free  Trade  Argument  and  the  Practical  Results — 
Automatic  Tariff  Revision  and  Market  Values. 

As  wealth  production  is  the  basis  for  prosperity 
and  welfare  of  the  people,  a  good  test  for  any  proposed 
governmental  action  will  be  an  inquiry  to  determine 
whether  the  measure  will  tend  to  encourage  this  pro- 
duction or  whether  it  will  discourage  the  investments 
needed  and  so  decrease  the  total  of  wealth  to  be  divided 
with  all  that  is  included  for  the  workers.  By  apply- 
ing this  test  to  the  important  questions  that  come  up 
much  ruinous  blundering  may  be  avoided.  As  an 
example  take  the  much-discussed  and  never  settled 
tariff  issue,  and  how  does  it  work  out? 

It  is  a  duty  of  government  to  promote  industries 
and  specially  encourage  development  of  new  industries 
which  will  give  more  wealth  creation  with  more  em- 
ployment for  labor.  For  this  end  the  despotic  idea 
is  to  appoint  managers  and  supply  the  capital,  or  else 
grant  a  monopoly  to  private  concerns  with  bounty 
added  sometimes  for  the  product.  The  more  effective 
modern  way  takes  the  form  of  a  protective  tariff  on 
imports  of  the  competing  articles.  This  gives  an 
incentive  with  an  equal  opportunity  for  any  or  all  who 
desire  to  engage  in  the  production.  Without  going 
into  the  free  trade  or  tariff  views  as  to  whether  this 
incentive  should  be  offered  or  not,  if  the  result  of  in- 

(135) 


136  THE  GOSPEL  OF  GREED 

creased  production  is  wanted  the  tariff  duties  furnish 
the  fairest  and  surest  means  for  getting  it. 

It  is  often  argued  from  a  superficial  view  that  those 
engaged  in  protected  industries  are  made  a  favored 
class  at  the  expense  of  the  others,  but  this  is  the 
socialistic  kind  of  logic,  because  the  competition  under 
any  tariff  duties  is  free  for  every  individual  on  earth, 
and  every  dollar  of  capital,  with  the  sole  proviso  that 
the  establishments  for  the  work  shall  be  within  the 
national  boundaries.  With  this  freedom  of  oppor- 
tunity if  some  succeed  more  than  others  they  are 
fairly  entitled  to  all  the  success  they  can  win.  When- 
ever there  are  assertions  about  the  excessive  profits 
from  protected  industries  it  is  either  a  clear  case  of 
misstatement  or  else  the  keen-eyed  capitalistic  greed 
of  the  world  has  overlooked  such  an  opportunity  for 
gain.  A  little  investigation  always  shows  that  the 
figures  for  the  alleged  big  profits  cannot  be  verified. 
The  invariable  law  in  business  affairs  is  that  the  bigger 
the  profits  the  quicker  the  competition  will  come  from 
others  equally  greedy  for  a  share  of  the  gains.  The 
ease  with  which  capital  is  moved  gives  a  fluid  char- 
acteristic, so  that  profits  cannot  long  be  kept  above 
the  common  level  for  other  investments,  even  if  this 
policy  is  attempted  by  the  biggest  kind  of  trust  com- 
binations. This  is  the  business  law  of  gravitation 
that  can  never  be  set  aside. 

If  the  protective  policy  is  decided  upon  one  essential 
is  that  the  duties  be  made  high  enough  to  give  the 
incentive,  otherwise  they  will  be  simply  an  added  tax 
on  the  consumers  without  result.  There  is  the  well- 
known  example  of  tin  plate  which  for  over  thirty 


THE  TARIFF  QUESTION  137 

years  had  a  low  rate  of  duty  and  nothing  was  done  in 
the  way  of  producing  tin  plate  in  the  United  States. 
It  was  not  until  the  tariff  of  1890  raised  the  duties  that 
the  industry  was  started  which  subsequently  developed 
sufficiently  to  supply  the  home  demand  at  lower  prices 
and  leave  a  surplus  for  exporting. 

The  economic  view  of  protection  is  that  there  is 
always,  even  in  prosperous  times,  a  surplus  of  labor 
unemployed.  This  unemployed  labor  is  a  burden  to 
be  supported  in  some  way  by  the  labor  that  is  em- 
ployed and  productive.  If,  then,  with  an  abundance 
of  materials  at  hand,  this  idle  labor  can  be  employed 
for  producing  a  valuable  product,  the  whole  of  that 
product,  practically,  is  added  to  the  common  store  of 
wealth  to  be  divided.  Hence  it  is  that  the  matter  of 
increased  cost  by  reason  of  tariff  duties,  whether  tem- 
porary or  permanent,  is  a  minor  consideration.  The 
consumers,  so  called,  will  get  their  share  of  the  benefit 
in  other  ways  that  will  more  than  offset  any  increased 
cost  for  the  protected  articles. 

The  free -trade  argument  against  protection  or 
government  influence  for  forcing  industrial  develop- 
ment, is  based  on  the  idea  that  the  people  as  a  whole 
are  buyers  and  consumers.  Then  it  is  argued,  logically 
enough,  that  tariff  taxes  on  the  articles  that  the  people 
buy  must  be  a  burden,  and  with  high-tariff  taxes  the 
people  must  be  impoverished  and  ruined.  But  there 
is  no  example  in  all  human  history  of  any  such  ruin 
to  any  country  from  tariff,  while  on  the  contrary  there 
is  always  increased  prosperity. 

The  explanation  is  that  the  premise  as  to  the  people 
as  consumers  is  defective,  because  it  assumes  that  the 


138  THE  GOSPEL  OF  GREED 

people  as  buyers  have  some  kind  of  a  natural  income 
without  regard  to  production  or  employment.  With 
this  assumption,  of  course,  tariff  duties  must  be  a  tax 
and  a  more  or  less  grievous  burden.  But  where  do 
the  incomes  or  earnings  come  from?  How  much  can 
the  idle  or  unemployed  buy  and  consume?  In  a  system 
of  education  is  it  more  important  to  arrange  for  teach- 
ing methods  of  saving  when  buying,  or  to  provide 
instruction  to  fit  the  youth  to  become  producers  or 
earners,  so  that  they  can  make  their  way  in  the  world? 
It  does  not  need  much  reasoning  on  this  point  to  show 
that  production  is  the  important  feature,  and  that  it 
takes  care  of  buying  or  consuming  as  the  greater  must 
include  the  lesser. 

As  a  logical  basis  for  the  free-trade  argument  from 
the  consumer's  standpoint,  the  income  must  be  pro- 
vided for.  It  is  not  enough  to  show  that  some  or 
even  a  majority  are  employed  in  profitable  wealth 
production.  It  must  be  established  that  the  laboring 
force  of  the  community  or  nation  is  employed  in  pro- 
ductive work  up  to  the  limit  of  its  capacity,  with  no 
unemployed.  With  such  conditions  it  would  clearly 
be  a  question  of  buying  or  exchanging  for  other  articles 
desired  at  the  lowest  cost  or  the  most  favorable  ex- 
changes. Efforts  to  establish  new  industries  in  such 
conditions  would  surely  mean  taking  labor  away 
from  the  profitable  production  to  engage  in  something 
less  profitable  and  needing  government  support.  If 
any  country  can  be  found  where  such  conditions 
exist  the  free -trade  argument  is  unanswerable.  If, 
however,  such  conditions  are  manifestly  impossible 
anywhere,  then  the  argument  is  radically  defective. 


THE  TARIFF  QUESTION  139 

just  here  it  may  be  noted,  also,  that  exchanging 
products,  while  generally  desirable,  adds  nothing  to 
the  total  of  actual  wealth,  though  it  usually  involves 
considerable  gains  for  the  business  concerns  which  in 
their  buying  and  selling  do  the  work  of  making  the 
exchanges.  The  wealth  of  a  country  must  be  created 
by  the  people  themselves. 

Take  the  example  of  a  country  where  agriculture  is 
the  one  important  industry,  as  was  the  case  with 
Canada  hardly  more  than  twenty  years  ago.  It  is 
evident  that  labor  for  agriculture  can  be  actively  em- 
ployed only  during  the  six  months  or  less  of  the  season, 
with  six  months  of  general  idleness,  aside  from  the 
number  not  employed  at  all  and  forced  to  emigrate. 
If  this  idle  labor  can  be  employed  in  producing  other 
articles  of  value  there  is  an  absolute  creation  of  wealth 
from  the  materials  and  labor  that  would  otherwise 
be  unused  and  worthless.  Whether  this  product  is 
valued  in  prices  a  little  more  or  a  little  less  is  of  small 
consequence  in  comparison  to  the  actual  value  which 
is  thus  created  and  distributed  in  the  community. 

This  is  the  problem  that  the  Canadian  Government 
worked  out  with  remarkable  success,  as  is  well-known 
to  all  who  have  noted  the  progress  during  the  twenty 
years.  There  were  tariff  duties,  and  bounties  in  ad- 
dition, paid  by  the  government  on  some  products, 
notably  iron  and  steel,  with  the  object  of  forcing  the 
development  as  a  factor  in  the  wealth  production  for 
the  benefit  of  all. 

Incidentally  it  may  be  noted,  also,  that  in  Canada 
no  demagogue  attacks  are  tolerated  on  railroads  or 
centralized  banking  institutions,  these  being  recognized 


140  THE  GOSPEL  OF  GREED 

and  appreciated  at  their  full  value  as  wealth-creating 
forces. 

Instead  of  the  ruin  as  argued  from  the  burden  of 
tariff  taxes  and  the  grand  total  of  debt  incurred  for 
railroad  building,  there  is  the  fact  that  the  former 
migration  of  unemployed  from  Canada  has  ceased, 
and  on  the  contrary  there  is  the  much  greater  move- 
ment of  settlers  into  the  northwestern  provinces  where 
the  industrial  development  in  recent  years  has  been 
one  of  the  world's  wonders.  No  public  man  or  no 
publication  in  Canada  would  dare  to  argue  against 
these  policies  on  the  absurd  basis  that  the  people" as 
consumers  were  being  robbed  by  the  protected  interests 
and  the  railroads. 

Much  the  same  results  from  the  same  causes  are 
shown  in  the  industrial  progress  of  Germany  during 
the  past  thirty  years.  There  the  government  gave 
the  incentive  for  wealth  production  by  high  protective 
duties,  liberal  subsidies  for  shipping  and  export  boun- 
ties for  the  products  sold  in  other  countries,  such 
exports  giving  so  much  more  employment  for  German 
labor  and  adding  to  the  total  of  the  national  wealth. 

The  results  from  the  stimulus  of  protective  duties 
are  even  more  important  in  the  United  States,  because 
the  operations  have  been  on  a  much  larger  scale  with 
larger  volume  of  production  and  with  the  benefits  more 
widely  distributed  in  the  higher  rates  of  wages,  and 
more  employment. 

But  the  larger  operations  require  more  capital 
and  more  ability  in  management.  Then  even  if  the 
percentage  rate  of  profit  is  smaller  the  totals  for  profits 
count  up  to  the  larger  accumulations  which  as  a  rule 


THE   TARIFF  QUESTION  141 

are  reinvested  for  more  production.  The  small  minds, 
so  wise  in  their  own  conceit,  are  dazed  by  the  figures  of 
millions  which  are  so  different  from  the  tens  and 
hundreds  to  which  they  are  accustomed.  They  are 
positive,  also,  judging  from  their  own  abilities,  that  no 
man  can  possibly  earn  a  million  dollars  by  his  own 
exertions,  so  there  is  the  certainty  that  all  the  mil- 
lionaires must  be  robbers  who  should  be  smashed  forth- 
with, while  further  accumulations  should  be  prevented. 
All  the  grander  results  in  the  wealth  creation  are  ig- 
nored and  obscured  by  the  fact  of  the  few  big  fortunes, 
and  there  are  fanatical  attacks  on  the  system  which 
allows  such  fortunes  to  be  piled  up.  In  so  far  as  the 
attacks  succeed  the  industrial  progress  is  halted,  the 
millions  employed  as  workers  suffer,  and  in  turn  the 
high -thinking  reformers  who  are  supported  by  the 
wealth  producers  will  find  their  own  incomes  seriously 
affected  by  lack  of  the  usual  contributions. 

Much  time  and  eloquence  is  wasted,  moreover,  in 
arguments  for  tariff  revision,  which  means  lower 
duties  for  articles  that,  it  is  claimed,  no  longer  need 
the  protection.  This  is  the  theoretical  view  again, 
leaving  out  the  human  element  and  the  working  force 
of  greed  for  gain.  These  factors  will  surely  and  cer- 
tainly reduce  the  prices  to  as  low  figures  as  the  general 
industrial  conditions  will  warrant,  and  so  automatically 
repeal  or  reduce  the  duties  as  far  as  the  market  prices 
are  concerned  for  the  people.  If  some  apparent  ex- 
ceptions are  quoted  where  high  prices  are  maintained 
they  are  still  the  exceptions  to  the  mass  of  evidence 
that  proves  the  rule.  Some  who  are  most  strenuous 
for  tariff  revision  always  point  to  some  other  industry 


142  THE  GOSPEL  OF  GREED 

the  conditions  of  which  they  know  little  about,  and 
at  the  same  time  explain  how  the  prices  in  their  own 
lines  have  been  cut  down  so  that  no  revision  is  needed. 

Revision  may  be  proper  enough  or  even  desirable 
for  many  details,  but  the  economic  principle  involved 
is  that  lowering  duties  for  the  sole  purpose  of  favoring 
more  competing  imports  to  displace  and  limit  the 
home  production  will  certainly  not  add  to  the  national 
wealth  production  nor  aid  in  promoting  the  general 
welfare. 

There  are,  of  course,  always  the  practical  con- 
siderations as  to  what  lines  should  be  stimulated  by 
protective  duties  and  what  articles  should  be  free  of 
duty.  If  there  is  no  reasonable  chance  for  develop- 
ment for  larger  production,  there  is  no  economic 
reason  for  protective  duties.  The  only  safe  guide  for 
tariff  changes  is  the  net  result  as  shown  by  the  statistics 
for  competing  imports.  Any  abstract  theories  or 
arguments  about  wages  or  labor  cost  or  profits  must 
be  delusive  and  unsatisfactory.  If  there  is  a  material 
increase  in  the  imports  for  any  industry  worth  holding 
for  our  own  workers,  it  is  conclusive  evidence  that 
something  is  wrong.  The  quickest  and  surest  way  to 
get  the  remedy  is  to  raise  the  duties  so  that  greed  for 
gain  will  get  busy  to  find  and  overcome  the  difficulties 
and  bring  the  results  in  holding  the  market  for  the 
larger  wealth  production  by  our  own  workers  with  the 
ultimate  benefit  in  prices  as  well. 

This  is  real  tariff  revision  which  the  reformers  do 
not  call  for.  It  would  not  smash  a  fortune  or  ruin  an 
establishment,  so  it  is  not  in  accordance  with  the 
reform  idea. 


THE  TARIFF  QUESTION  143 

One  other  point  that  is  a  stumbling  block  for  much 
of  the  tariff  discussion  is  the  mistake  so  often  made  by 
both  tariff  and  free-trade  advocates  to  the  effect  that 
tariff  duties  must  always  act  mathematically  in  adding 
so  much  to  the  prices.  The  first  practical  lesson  that  a 
boy  learns  in  business  is  that  prices  are  governed  by 
the  law  of  supply  and  demand,  and  that  market  prices 
must  be  accepted  for  articles  to  be  sold.  Whether  a 
tariff  duty  will  affect  prices  or  not  must  depend  on  the 
conditions  of  the  market  where  the  article  is  sold. 
In  this  country,  for  example,  we  have  a  large  pro- 
duction in  many  lines  which  wholly  or  partially  controls 
the  market  prices.  We  have  a  large  production  of 
grain  with  a  surplus  for  export,  and  it  would  be  folly 
to  suppose  that  any  tariff  duty  could  have  an  effect 
in  advancing  the  prices  in  our  markets.  At  the  other 
extreme  might  be  mentioned  tea  and  coffee,  of  which 
we  have  no  production,  and  for  which  a  tariff  duty 
would  be  paid  in  full  by  the  added  prices.  Between 
these  extremes  there  are  all  kinds  of  variations,  and 
just  in  proportion  as  the  domestic  production  of  any 
article  approximates  to  the  total  supply  needed,  the 
prices  will  be  less  and  less  affected  by  any  tariff  duties 
on  the  smaller  portion  imported. 

With  unsettled  market  conditions  a  small  portion 
of  the  supply  offered  at  a  reduction  will  often  lower 
the  prices  for  the  whole,  but  in  ordinary  conditions, 
anything  up  to  one-quarter  or  one-third  will  be  ab- 
sorbed without  affecting  the  larger  portion.  If  domes- 
tic production  in  any  line  furnishes  one-half  or  more 
of  the  supply,  the  imports  will  have  to  concede  some- 
thing to  hold  their  place  in  the  market.  The  im- 


144  THE  GOSPEL  OF  GREED 

porter  must  sacrifice  something,  or,  as  it  is  said,  must 
pay  part  or  sometimes  all  of  the  duty  if  he  continues 
to  sell. 

This  is  what  is  meant  by  saying  that  with  the  proper 
stimulus  for  production  the  duties  will  be  automatically 
reduced  or  repealed  as  far  as  the  selling  prices  are  con- 
cerned to  the  full  extent  that  the  labor  cost  will  war- 
rant. The  duty  remaining  in  operation  will  serve  sim- 
ply to  give  some  extra  advantage  to  our  producers  as 
against  the  imports  which  would  displace  just  so  much 
in  the  supply  without  changing  the  prices  for  the 
consumers. 

When  it  is  a  question  of  a  tariff  duty,  either  as  to 
whether  it  is  advisable  or  not,  or,  as  to  the  rate,  the 
first  inquiry  should  always  be  concerning  the  market 
conditions.  If  there  is  no  reasonable  chance  for  de- 
veloping a  production,  as  with  tea  and  coffee,  a  duty 
is  not  advisable  unless  needed  for  revenue.  If  the 
market  is  already  well  supplied  with  the  home  product, 
a  small  duty  would  give  all  the  advantage  needed 
without  affecting  prices. 

In  spite  of  these  obvious  principles,  however, 
some  of  the  fiercest  tariff  discussions  have  been  con- 
cerning duties  for  schedules  or  articles,  which,  owing 
to  the  market  conditions  could  not  be  affected  to  any 
appreciable  extent  by  tariff  changes  either  way. 

But  the  tariff  robbers  combine  into  trusts  to  keep 
up  prices  and  nullify  whatever  advantages  might  be 
claimed  for  a  tariff  policy,  so  it  is  argued. 

The  answer  is  that  if  any  one  has  any  specific 
knowledge  of  such  profits  that  are  concealed  from  the 
greed  for  gain  of  all  the  surplus  capital  of  the  world, 


THE  TARIFF  QUESTION  145 

he  need  only  make  the  same  public,  and  as  quick  as 
the  telegraph  can  work,  there  will  come  the  compe- 
tition eager  for  a  share.  If  the  reformers  have  such 
knowledge  and  really  want  the  results  there  is  no  need 
of  waiting  for  legislation.  The  fact  is,  however,  that 
it  is  easier  and  more  profitable  for  the  reformers  to 
make  their  appeals  to  ignorance  than  it  is  to  show  that 
there  is  any  business  basis  for  their  reckless  assertions. 
Smashing  is  the  object,  and  benefit  to  the  public  is 
the  pretense. 

One  of  the  most  striking  manifestations  of  the 
intelligence  or  mental  capacity  of  the  self-appointed 
reformers  for  uplifting  humanity  is  the  perverse  way 
in  which  they  persistently  regard  the  item  of  profit. 
There  is  the  fierce  denunciation  of  the  capitalistic 
robbers  in  general,  and  the  tariff-protected  robbers  in 
particular,  for  any  advance  in  prices,  no  matter  what 
may  be  the  circumstances  or  conditions,  but  they  are 
never  credited  for  any  price  reductions  that  more  than 
equal  the  advances.  It  is  wildly  assumed  that  in 
some  mysterious  way  the  robbers  get  the  products 
without  effort,  much  the  same  as  the  stage  magician 
draws  astonishing  things  from  a  hat.  Nothing  is 
intimated  about  the  establishments  with  the  armies  of 
workers,  the  wages  paid,  materials  bought,  or  the 
general  cost  of  production.  The  beginning  and  end  of 
all  are  the  profits  and  the  fortunes  which  ordinary 
common  sense  understands  can  be  only  a  small  frac- 
tion of  the  total  value  of  the  products. 

Would  any  one  imagine  that  these  wicked  robber 
barons  with  favorable  conditions  had  to  pay  out  or 
distribute  ninety  to  ninety-five  dollars  out  of  every 


146  THE  GOSPEL  OF  GREED 

hundred  they  wring  from  the  abused  public?  The 
paying  out  or  distributing  moreover  must  all  be  done 
before  there  can  be  any  products  for  sale  to  bring 
the  profits. 

Could  any  one  imagine,  further,  from  the  tirades 
that  with  all  the  power  and  opportunties  for  robbery 
there  is  a  regular  list  of  failures  to  prove  that  some 
were  unable  to  get  any  profits?  If  tariff  duties  confered 
special  privileges  with  license  to  rob,  how  could  any  fail? 

And  yet  how  many  of  the  concerns  that  started  on 
their  career  of  crime  thirty  years  ago  are  still  numbered 
among  the  living? 


CHAPTER  XVII. 

THE  RAILROAD  PROBLEM. 

The  Wonderful  Development  of  the  Railroad  Industry — The 
Work  of  Individuals  Greedy  for  Gain — The  Progress  of 
Fifty  Years — Perversion  of  Public  Sentiment — Sacrificing 
the  Greater  Interests. 

What  will  be  said  about  the  railroad  problem,  and 
the  dangers  from  the  power  in  the  hands  of  the  rail- 
road magnates?  Can  regulations  be  enforced  to 
prevent  the  misuse  of  such  powers,  or  must  the  govern- 
ment assume  full  control  or  ownership  of  the  railroads? 
How  do  the  economic  principles  apply,  and  what  is  the 
common  sense  view  of  the  matter? 

For  any  proper  consideration  of  the  subject  it 
would  be  necessary  to  ask:  What  are  railroads,  how 
did  they  come,  what  have  they  done,  and  why  should 
they  be  taken  away  from  the  present  owners  or  man- 
agers? 

The  answer,  in  fairness,  would  be,  that  the  railroads 
at  first  were  individual  experiments,  undertaken  in  the 
face  of  almost  universal  ridicule  and  contempt.  Under 
any  system  of  socialism  or  any  plans  for  deciding  off- 
hand by  the  initiative  and  referendum  of  popular 
vote,  the  men,  who  harldy  more  than  fifty  years  ago 
proposed  to  make  an  exaggerated  tea-kettle  pull 
wagons  along  a  track  would  have  been  -sent  forthwith 
to  the  padded  cells  of  an  insane  asylum.  Horses  and 
oxen  had  been  safe  and  reliable  means  for  transpor- 
tation through  all  the  centuries  of  human  history. 

(147) 


148  THE  GOSPEL  OF  GREED 

The  tea-kettle  suggestion,  with  dangers  of  explosion 
admitted,  could  come  only  direct  from  the  devil. 

But  the  tea-kettle  men  persisted  and  proved  their 
theories  by  the  results.  Then  others  were  attracted 
by  the  chances  for  profit.  "If  we  can  give  such  re- 
ductions in  cost  and  saving  of  time,"  they  said,  "we 
will  have  an  enormous  volume  of  business  and  make 
big  gains."  There  was  no  suggestion  then  of  govern- 
ment ownership,  but  rather  a  sort  of  good-natured 
toleration,  which  said:  "Let  the  idiots  spend  their 
money,  and  see  what  they  can  do."  The  horse  owners 
at  first  laughed,  and  later  became  panic  stricken,  but 
were  wrong  both  ways. 

The  railroads  developed,  slowly  at  first,  but  they 
opened  markets  and  created  business  opportunities 
that  did  not  exist  before,  because  of  the  prohibitive 
cost  of  transportation.  And  who  profited  most,  the 
railroads  with  their  charges  or  the  producers  of  the 
products  for  which  the  markets  were  opened?  If 
there  was  no  inducement  for  producers  to  ship  or 
passengers  to  travel,  how  would  the  railroads  get  the 
business  or  profits? 

As  to  what  the  railroads  have  done,  consider  for  a 
moment  the  enormous  values  created  by  the  service. 
There  are  the  products  of  vast  areas  regularly  brought 
to  market,  and  the  merchandise  carried  in  return. 
The  benefit  from  the  railroad  service  is  so  stupendous 
that  it  would  stagger  human  imagination  to  attempt  to 
put  it  in  figures.  If  from  any  cause  the  entire  railroad 
service  was  suspended  for  one  week,  the  ruin  and  dis- 
aster would  be  too  appalling  to  think  of.  But  what 
consideration  is  given  to  all  this  in  comparison  with 


THE  RAILROAD  PBOBLEM  149 

an  alleged  overcharge  of  ten  cents  for  a  thousand-mile 
transportation,  or  some  other  minor  or  fanciful  griev- 
ance? The  younger  generation  who  never  saw  an  ox- 
team  and  do  not  know  the  meaning  of  the  word  stage- 
coach, sneer,  ridicule  and  condemn  without  stint,  any- 
thing slower  than  a  mile  a  minute,  and  demand  all  the 
luxurious  accommodations  accordingly.  It  is  just 
an  example  of  what  the  human  element  is,  in  contrast 
with  what  the  philosophers  fancy  it  should  be. 

What  a  picture  could  be  outlined  to  show  com- 
parative results  in  benefit  to  humanity  from  purely 
philanthropic  endeavor  and  the  money-getting  greed 
of  commercialism  working  for  selfish  gain.  Picture 
the  public  highways  of  former  years  with  the  poor 
wretches  tramping  from  town  to  town  or  farm  to  farm 
seeking  employment  and  wages  that  would  enable 
them  to  exist.  Then  the  lodgings  by  the  wayside 
and  the  start,  cold  and  hungry,  next  morning  for  the 
day's  work.  Fill  in  with  the  usual  high  light  details, 
and  see  the  philanthropic  heart  bleed  in  sympathy,  and 
the  appeals  for  subscriptions  to  furnish  some  aid  for 
the  unfortunate.  Commercial  greed  in  the  meantime 
is  hard-hearted  and  deaf  to  the  charitable  appeals— 
that  is,  according  to  the  worst  view  of  it — but  it  will 
invest  in  the  shares  of  the  railroad  promising  profits. 
The  railroad  will  carry  the  workers  a  full  day's  journey 
in  one  hour,  giving  them  a  chance  for  a  days'  work  with 
full  pay  in  place  of  the  time  lost  in  tramping.  It 
also  takes  the  farmer's  produce  which  was  rotting  in 
the  fields  because  of  the  cost  of  getting  it  to  market, 
gives  it  a  value,  and  stimulates  more  production. 
Can  there  be  any  question  as  to  the  real  benefits  in 


150  THE  GOSPEL  OF  GREED 

such  a  case  to  the  workers  and  producers  without  re- 
gard to  motives  or  intentions? 

No  right-minded  human  being  would  attempt 
to  sneer  at  or  belittle  the  work  of  the  genuine  philan- 
thropists who  honestly  strike  to  benefit  their  fellow- 
-men  or  to  relieve  one  single  case  of  human  misery. 
For  what  they  do,  or  even  what  they  try  to  do,  they 
are  entitled  to  all  honor  and  respect.  But  this  does 
not  change  the  facts  as  to  the  immensely  greater 
benefits  that  come  from  the  greed  of  commercialism 
which  is  so  unsparingly  denounced  by  the  professional 
or  sham  philanthrophy  which  has  been  cynically  de- 
fined as  a  scheme  for  spending  other  peoples'  money. 
Real  philanthrophy  is  always  honored  by  real  com- 
mercialism which  contributes  liberally  to  the  calls. 
There  is  no  reason  then,  for  the  envious,  splenetic  at- 
tacks by  the  sham  philanthropists  or  reformers  on 
the  leaders  of  commercialism  whose  work  has  given 
the  grander  results  in  benefit  for  humanity. 

The  grand  chorus  of  denunciation  at  present  turns 
against  the  railroads  and  railroad  managers  more  than 
against  any  other  forms  of  capitalistic  control,  and 
curiously  enough  the  denunciation  is  based  on  alleged 
evils  in  the  management  or  defects  in  the  service. 
From  the  President  and  Congress  down  to  the  town 
councils,  all  the  political  workers  feel  called  upon  to 
take  a  hand  in  regulating  railroads  and  improving 
railroad  management.  The  men  sleected  by  the  stock- 
holders of  the  roads,  and  paid  big  salaries  for  their 
supposed  ability,  are  condemned  as  public  enemies  or 
as  utterly  incompetent  for  their  positions.  How  does 
it  appear  from  a  sane,  common-sense  point  of  view  or 
what  is  the  explanation? 


THE  RAILROAD  PROBLEM  151 

Fifty  years  ago  when  railroads  proved  their  value, 
there  was  a  popular  craze  for  railroads.  All  the  cities 
and  towns  of  the  country  wanted  railroad  service  at 
once.  Land  grants  and  cash  bounties  were  freely 
given,  and  towns  ambitious  to  become  great  com- 
mercial centres,  voted  bond  issues  as  inducements  for 
railroads  to  come.  The  national  government  sub- 
sidized transcontinental  lines  with  lavish  land  grants 
and  everywhere  railroads  and  railroad  men  were  ex- 
alted. But  the  railroads  could  not  come  anywhere 
near  meeting  the  extravagant  expectations.  In- 
dustries were  developed,  it  is  true,  but  the  growth  had 
to  be  gradual.  Ambitious  towns  saw  little  prospect 
of  quick  returns  for  the  indebtedness  assumed,  as  it 
took  time  to  build  and  equip  the  lines,  to  say  nothing 
of  establishing  the  industries.  Railroading  being  an 
entirely  new  form  of  industry,  there  were,  necessarily, 
mistakes,  blunders  and  disasters.  So  there  came 
a  reaction  in  the  public  sentiment  from  the  first  wild 
enthusiasm. 

But  the  development  in  railroading  was  going  on. 
The  service  attracted  the  brightest  men,  who  studied 
the  problems  of  better  service  at  lower  cost,  and  im- 
provements in  all  the  details,  always  with  an  eye  to  the 
big  rewards  if  the  ideas  proved  valuable.  Then  there 
was  the  fierce  competition  and  railroad  wars  with  the 
heavy  losses  and  destructive  results.  There  were  high- 
handed proceedings  in  the  days  of  Jim  Fisk  and  Jay 
Gould  for  wrecking  railroad  properties  in  order  to  get 
control.  Old  laws  did  not  seem  to  fit  the  new  con- 
ditions, and  with  a  consciousness  of  power  railroad 
officials  and  even  employes  took  on  airs  of  authority 


152  THE  GOSPEL  OF  GREED 

that  Were  offensive  to  the  public.  Politicians  were 
quick  to  learn  that  the  railroads  did  not  want  to  be 
disturbed  by  hostile  legislation,  and  the  railroad 
managers  had  to  protect  their  interests  by  payments 
or  favors  in  the  nature  of  blackmail. 

Finally  real  leaders  came  to  the  front  with  broader 
ideas,  better  methods  and  better  systems,  all  designed 
for  better  service.  Warring  short  lines  were  con- 
solidated, through  routes  established,  better  equipment 
furnished,  with  better  service  in  every  detail  supplied 
at  reduced  rates.  This  management  called  for  a 
higher  order  of  ability,  and  with  the  consolidations 
into  larger  systems  the  managers  became  more  im- 
portant with  control  of  interests  that  figured  up  to 
big  fortunes.  The  politicians  found  it  less  easy  to 
scare  with  their  threats  of  legislation,  but  they  could 
make  records  by  ranting  attacks  on  the  growing 
monster  of  railroad  monopoly  whose  aim  was  to  "rob 
and  enslave  the  people."  The  railroad  management 
included  the  usual  share  of  good,  bad  and  indifferent, 
and  it  was  only  necessary  to  have  a  few  shining  ex- 
amples of  the  worst  features  to  condemn  the  whole 
as  desperately  wicked. 

Who  could  imagine  from  the  fierce  denunciations 
of  railroads  and  railroad  managers  that  they  are  the 
greatest  factor  in  the  progress  of  modern  civilization 
with  a  creation  of  wealth  far  exceeding  any  other  in- 
dustry? Who  would  suppose  that  the  improvements 
in  railroad  equipment  and  service  in  the  little  more 
than  fifty  years,  have  been  far  beyond  the  progress 
made  in  any  other  branch  of  human  industry  for  an 
equal  time  since  the  world  began?  Compare  the  road- 


THE  RAILROAD  PROBLEM  153 

beds,  rails,  rolling  stock,  locomotives,  terminals  and 
general  service  of  the  present  with  the  same  only  forty 
years  ago,  and  realize  something  of  what  this  means. 
The  cost  of  service  has  been  steadily  reduced  in  the 
meantime  so  that  from  an  average  on  all  the  railroads 
of  the  country  in  1870  of  two  cents  (1.99)  a  ton  per 
mile  for  freight,  the  rate  in  1900  was  lowered  to  less 
than  three-quarters  of  a  cent  (0.70)  per  mile. 

Should  the  men  whose  brains  and  money  have 
given  such  magnificent  results  be  honored  and  re- 
warded or  not,  no  matter  what  may  be  the  shortcomings 
of  the  few?  These  men  if  the  results  are  accepted  as 
evidence,  have  proved  an  ability  above  any  equal 
number  of  men  engaged  in  any  branch  of  industry  in 
the  world's  history.  And  yet  such  is  the  curiously 
abnormal  and  perverted  public  sentiment  that  it 
would  hardly  be  an  exaggeration  to  say  that  no  rail- 
road official  or  attorney  employed  by  a  railroad  could 
today  be  elected  to  any  prominent  public  position, 
either  national,  state  or  municipal  in  all  the  country. 
The  animosity  against  railroads  and  the  bugaboo  of 
railroad  domination  have  been  worked  to  such  an  ex- 
tent that  it  is  almost  political  death  for  any  public 
man  to  be  suspected  of  anything  like  a  friendly  feeling 
for  railroads  or  railroad  interests. 

It  is  assumed,  also,  that  the  railroads  have  some 
mysterious  way  of  getting  unlimited  capital  for  any 
outlay  that  may  be  demanded.  Legislators  order 
expenditures  ostensibly  for  public  benefit,  but  really 
more  for  the  purpose  of  hitting  at  the  railroads.  Grade 
crossings  must  be  changed,  safety  appliances  furnished, 
block  signal  systems  established,  better  cars  supplied, 


154  THE  GOSPEL  OF  GREED 

more  men  employed  with  more  pay  and  shorter  hours, 
more  trains  run,  and  at  the  same  time  the  income  is 
cut  off  by  reductions  ordered  in  rates  for  freight  and 
passenger  service.  Is  it  any  wonder  when  the  railroads 
are  thus  singled  out  from  all  other  industries  for  con- 
demnation as  quasi-criminal  in  their  management, 
that  investors  hesitate  about  putting  their  capital  into 
the  business? 

Finally  to  crown  the  absurdities  of  the  public 
hostility  to  railroads,  it  was  recently  proposed  to 
punish  the  railroads  for  not  giving  better  service  when 
we  had  a  season  of  unexampled  prosperity.  The 
roads  had  not  been  able  to  get  money  needed  for  in- 
creasing their  equipment  to  take  care  of  the  larger 
volume  of  business  which  came  to  them  in  excess  of 
their  calculations.  If  a  thousand  shippers  along  the 
line  of  a  road  called  for  a  thousand  cars  when  the  road 
had  only  five  hundred  available,  penalties  were  to 
be  enforced  for  the  failure  to  supply  the  cars  which 
were  not  on  hand  and  which  the  road  had  no  money 
to  pay  for.  But  this  proved  to  be  a  little  too  much 
even  for  hostile  legislators. 

Railroad  managers  as  a  rule  have  been  men  of 
broad  ideas  looking  for  profits  from  increased  business. 
So  it  was  the  settled  policy  to  extend  lines  into  new 
territory  and  to  provide  the  best  possible  equipment 
somewhat  in  advance  of  the  actual  requirements. 
They  had  faith  in  the  resources  of  the  country  and  the 
good  sense  of  the  people  for  utilizing  the  same  for 
larger  wealth  production  which  would  mean  more  ex- 
changes and  more  business  for  the  railroads.  Even 
when  the  wave  of  demagogism  threatened,  they  tried 


THE  RAILROAD  PROBLEM  155 

by  every  expedient  to  get  the  money  needed  for  keep- 
ing up  the  improvements.  But  the  destroyers  proved 
too  powerful.  When  the  railroads  tried  to  sell  stocks 
there  was  a  howling  all  along  the  line  about  the  evils 
of  stock  watering,  and  then  investors  had  no  use  for 
stocks  that  could  not  give  promise  of  adequate  returns, 
and  which  were  threatened  with  confiscation  by  the 
laws  cutting  down  the  income.  If  the  roads  offered 
bonds  there  was  more  howling  about  the  increase  in 
expenses  to  be  met,  and  the  higher  interest  rates  to  be 
paid. 

There  were  plenty  of  warnings  to  the  effect  that  the 
railroad  service  was  not  keeping  pace  with  the  general 
industrial  development,  and  that  there  must  be  serious 
trouble  if  the  roads  were  prevented  from  developing, 
as  they  were  anxious  to  do,  with  more  investments. 
But  the  ghost-dancing  reformers  wanted  more  smash- 
ing, and  went  further  than  ever  in  their  demands  and 
the  threats  for  wholesale  confiscation.  The  year 
1906  will  be  remembered  for  the  railroad  congestion, 
owing  to  the  impossibility  on  the  part  of  the  roads  of 
handling  the  volume  of  business  offered.  There  were 
heavy  losses  to  the  producers,  of  course,  and  when  the 
products  could  not  be  transported  promptly  there 
was  necessarily  a  check  to  the  wealth  production, 
which  proved  to  be  the  forerunner  of  worse  disasters 
to  follow  from  similar  insane  attacks  on  leaders  in 
other  important  industries. 

But  is  not  the  foregoing  a  good  deal  in  the  nature 
of  ancient  history?  Admitting  all  that  can  be  said 
about  the  wonderful  development  of  the  railroad 
service  and  the  benefits  therefrom,  yet  having  reached 


156  THE  GOSPEL  OF  GREED 

such  an  important  and  comanding  position,  is  it  not 
all  the  more  necessary  for  a  larger  measure  of  govern- 
ment control  up  to  the  limit  of  government  ownership? 
Is  it  safe  to  leave  the  liberties  of  the  people  and  their 
industrial  life  at  the  mercy  of  the  few  individuals  who 
are  gaining  control  of  the  entire  railroad  service?  Then 
there  is  the  further  argument  that: 

1.  One  of  the  obvious  functions  of  government  is 
to  provide  public  highways  for  travel  and  traffic,  and 
the  full  power  of  the  government  must  be  exercised 
to  afford  protection  for  the  travelers  and  the  traffic. 

2.  Railways  are  essentially  public  highways  with 
certain  features  of  improvement,  and  are  as  necessary 
as  the  highways  for  the  benefit  of  all  the  people. 

3.  It  is,  then,  only  a  question  as  to  when  or  how 
the  government  should  proceed  to  fulfill  its  duty  of 
owning  and  operating  the  railways  as  public  highways 
for  the  benefit  of  all  the  people. 

While  this  seems  plausible  enough,  yet  there  is  the 
same  element  of  confusion  of  ideas  or  false  logic  so 
characteristic  of  all  the  socialistic  theories.  The  first 
statement,  or  premise,  refers  to  public  highways  as 
highways,  with  no  consideration  of  service  on  the 
highways.  The  roads  are  open  to  all  for  walking, 
riding,  or  driving,  as  well  as  for  push  carts,  wagons, 
vans,  carriages,  stage-coaches,  or  other  vehicles.  The 
public  have  a  choice  of  conveyances  for  passengers  or 
merchandise,  and  such  service  is  always  left  for  in- 
dividuals to  furnish  at  their  own  terms,  subject  only 
to  the  common  carrier  restrictions. 

The  essential  difference,  when  it  comes  to  railroads, 
is  that  the  service  is  entirely  transportation  to  be  paid 


THE  RAILROAD  PROBLEM  157 

for,  and  there  is  nothing  in  the  nature  of  a  public 
highway  free  for  all.  The  railroads  do  not  even  use 
the  public  highways,  but  buy  and  pay  for  their  own 
routes,  as  well  as  for  the  equipment  of  rolling  stock, 
stations,  terminals,  and  all  that  is  necessary  for  rail- 
road service.  The  only  suggestion  of  a  public  feature 
lies  in  the  fact  that  the  government  lends  its  authority 
for  condemnation  proceedings  where  property  owners 
along  the  line  would  not  otherwise  make  reasonable 
terms  of  sale.  Aside  from  a  sort  of  obligation  for  this 
government  aid,  the  ownership  of  the  railroads  and 
the  equipment  is  as  absolute  and  positive  as  the  owner- 
ship of  the  vehicles  that  use  the  public  highways. 
The  railroads  supply  improved  transportation  service, 
and  not  public  highways. 

A  more  logical  and  reasonable  proposition  would 
be  that  as  an  abstract  principle  of  right  and  justice, 
there  is  no  reason  why  government  should  discrim- 
inate against  railroads  by  undertaking  to  fix  rates 
for  service,  while  the  owners  of  vehicles  furnishing 
like  service  on  the  public  highways,  are  allowed  to 
make  their  own  terms  without  restrictions.  It  would 
follow  logically,  also,  that,  if  government  undertakes 
to  own  and  operate  the  railroad  transportation,  it 
should  equally  find  it  necessary  to  own  and  operate 
all  the  vehicles  that  serve  the  people  on  the  public 
highways.  The  confiscation  idea  as  proposed  for  rail- 
road property,  moreover,  must  equally  be  extended 
to  all  conveyances,  public  or  private,  that  in  any  way 
make  use  of  the  public  highways  and  do  not  offer  free 
service  to  all  the  people. 

There  is,  of  course,  the  common-carrier  legal  prin- 


158  THE  GOSPEL  OF  GREED 

ciple  which  applies  to  railroads  and  public  vehicles  on 
the  highways.  This  means  government  control  to 
the  extent  of  enforcing  equal  terms  for  service  to  the 
public,  without  unfair  discrimination.  There  can  be 
no  question  as  to  the  wisdom  and  benefit  of  such  regu- 
lations, and  a  pretty  wide  extension  of  this  power 
would  be  admitted  as  reasonable  for  legislation  con- 
cerning railroads.  But  the  question  presented  is 
ownership  rather  than  regulation  by  the  government, 
because  the  power  of  regulation  is  conceded  up  to  the 
limit  of  fixing  rates  which  is  on  the  edge  of  confiscating 
the  property  without  compensation.  Now  we  are  told 
that  all  such  regulation  is  useless,  and  does  not  relieve 
the  people  from  the  horrible  oppression  of  the  railroads, 
and  that  nothing  but  full  government  ownership  and 
control  will  be  satisfactory. 

Here  is  an  industry  representing  the  highest  degree 
of  human  progress  both  in  inventive  genius  and  system- 
atic organization  for  grand  results,  hardly  known 
fifty  years  ago  and  now  the  most  important  factor  for 
industrial  development.  Then,  think  of  the  enormous 
losses  for  capital  in  working  out  these  results,  the 
bankruptcies,  the  receivers  and  reorganizations  in 
evidence,  as  well  as  the  thousands  and  thousands  of 
inventions  with  the  costly  experiments  for  testing 
those  that  promised  some  value,  the  rate-wars  that 
swept  away  earnings,  the  accidents  and  wrecks,  and 
in  fact,  all  the  dearly  bought  experience  which  goes  to 
make  up  the  sum  of  knowledge  necessary  for  develop- 
ing along  new  lines.  It  could  easily  be  shown  by  the 
figures  that  the  capital  sunk  and  lost  in  railroad  in- 
vestments in  fifty  years  would  more  than  double  the 


THE  RAILROAD  PROBLEM  159 

value  of  all  the  present  solvent  lines,  including  all 
the  alleged  watering  of  stocks,  and  this  aside  from 
the  cost  of  the  experience-teaching.  The  benefits 
given  to  the  public  in  the  meantime  are  beyond  cal- 
culation. 

But  all  this  counts  for  nothing.  The  men  who 
invested  their  money  and  finally  worked  order  and 
system  out  of  chaos  and  failures,  are  actually  getting 
some  of  the  rewards  they  struggled  for  in  profits  from 
increased  business  at  lower  rates  with  better  service 
to  the  public.  Some  are  still  struggling  with  receiver- 
ships, but  some  have  proved  their  ability  and  as  a 
measure  of  their  success  are  piling  up  the  fortunes 
which  inflame  the  mad  jealousy  of  the  socialist 
reformers. 

What  reason  can  be  offered  for  changing  from  the 
present  management  of  railroads,  which  has  given 
such  wonderful  results,  to  an  unknown  and  untried 
management  of  government  officials? 

The  answer  would  be,  that  the  demands  for  a 
change  come  mostly  from  those  who  have  the  least 
knowledge  of  railroad  business.  They  see  large  con- 
solidations and  a  few  leaders  looming  up  as  powerful 
magnates,  and  they  tremble  (in  a  professional  way) 
for  the  liberties  of  the  people.  These  magnates  can 
levy  unlimited  tribute,  and  can  build  up  or  ruin,  as 
they  see  fit,  any  individuals,  corporations,  cities  or 
sections.  But  why  not  go  further  and  add  more 
horrors?  The  magnates  can  run  trainloads  of  dyna- 
mite to  destroy  everything  along  the  lines,  and  they 
have  power  to  mount  long  range  guns  on  the  cars  for 
wider  destruction.  If  they  have  the  nihilist  instincts 
they  can  surely  work  widespread  ruin. 


160  THE  GOSPEL  OF  GREED 

But  then  they  are  greedy  magnates  and  want 
the  big  fortunes.  How  will  these  fortunes  come  if 
producers  are  ruined?  Railroad  profits  can  come  only 
from  transportation  of  the  products.  The  railroads 
can  stimulate  production  by  making  opportunities, 
and  giving  more  value  to  the  producers,  but  if  the 
latter  get  no  benefit  there  will  be  no  shipment  of  prod- 
ucts. If  the  alleged  greedy  magnates  have  a  modicum 
of  business  sense,  they  cannot  be  destructionists. 
Contrarywise,  if  they  have  destructionist  ideas  they 
never  could  have  worked  up  to  the  position  of  greedy 
magnates.  Admitting  that  there  are  or  have  been, 
numerous  cases  of  unfair  discrimination  for  favorites, 
or  malicious  spite-work  against  others,  and  make  it 
ten  times  all  that  is  charged,  still,  what  does  it  all 
amount  to  as  compared  with  the  whole  vast  volume 
of  railroad  business? 

Would  government  control  be  any  better  in  this 
particular?  Would  any  congressional  committees  or 
government  officials — taking  them  as  they  run — that 
would  have  control  of  rates  and  rate-making,  be  any 
more  free  from  the  sordid  influences  that  would  dis- 
criminate for  or  against  individuals  or  localities? 
The  magnates  want  profits  that  come  from  the  best 
service  with  the  largest  volume  of  business.  The  com- 
mittees or  officials  would  have  nothing  to  lose  if  personal 
or  political  bias  for  punishing  opposition  influenced 
rate-making  discriminations.  There  is  a  chance  for 
protest  and  appeals  with  the  magnates,  but  what 
could  be  done  with  congressional  committees  or  govern- 
ment officials,  where  the  questions  would  be  made 
political  issues? 


THE  RAILROAD  PROBLEM  161 

As  this  is  not  a  discussion  of  particular  railroad 
questions,  but  only  an  outline  of  general  principles, 
it  is  sufficient  to  add  that  the  same  laws  should  apply 
to  all,  whether  engaged  in  railroading  or  any  other 
occupation.  If  there  is  crime  it  should  be  punished, 
but  unless  crime  can  be  proved  for  punishment  there 
should  be  no  wholesale  condemnation  of  an  important 
industry  simply  because  it  is  important,  or  because 
some  individuals  have  proved  exceptional  ability. 

But  again  what  should  be  the  policy  of  government 
towards  railroads,  leaving  out  the  socialistic  notions 
of  ownership? 

Well,  what  is  wanted?  Is  the  important  object 
service  for  the  public,  or  must  everything  turn  on  the 
question  of  possible  profits?  Has  the  last  limit  of  per- 
fection been  reached  in  railroading,  or  is  there  a  pos- 
sibility of  further  improvement?  Then  if  further 
improvements  are  possible  or  desirable,  how  will  they 
be  obtained?  Have  the  improvements  in  the  past 
come  from  bankrupt  roads  run  by  receivers,  or  from 
prosperous  roads  making  profits  for  the  stockholders 
and  managers?  If  government  legislates  to  cut  down 
profits  by  reducing  rates  on  the  prosperous  roads,  will 
the  public  be  better  served  in  the  first  place,  and  will 
the  government  undertake  to  make  up  the  losses  for 
the  struggling  roads  where  the  amount  of  business  will 
not  pay  the  running  expenses  at  the  rates  fixed? 
These  are  a  few  of  the  practical  questions  to  be  con- 
sidered. 

And  what  are  the  greedy  magnates  doing?  Why 
are  the  richest  and  most  powerful  of  the  magnates 
spending  hundreds  of  millions  in  tunnels  and  terminals 


162  THE  GOSPEL  OF  GREED 

for  New  York  City?  Why  are  they  spending  more 
millions  on  the  lines  for  reducing  grades  and  widening 
out  curves  so  that  speed  may  be  increased  or  a 
few  minutes  saved  in  the  running  time?  Is  all  this 
done  for  the  sole  and  only  purpose  of  robbing  the  pub- 
lic and  enslaving  the  people,  or  is  it  a  business  enter- 
prise for  giving  better  service  to  attract  more  business 
that  will  ultimately  return  larger  profits?  Would  any 
legislative  body  ever  be  induced  to  vote  the  appropri- 
ations needed  for  such  improvements? 

If  continued  progress  for  railroad  service  in  the 
next  twenty-five  years  could  show  one-half  of  the  value 
of  improvements  that  were  made  during  the  past  fifty 
years  in  railroading,  and  if  in  doing  so  the  wealth  and 
power  of  the  magnates  were  inceased  ten-fold,  would 
it  not  be  a  cheap  price  and  a  profitable  business  trans- 
action from  the  point  of  view  of  better  service  for  the 
public? 

The  real  railroad  problem  that  must  be  decided 
without  delay  is  whether  the  welfare  of  the  people 
shall  be  promoted  by  encouraging  railroad  magnates 
to  continue  the  work  of  improvement  for  better  service, 
or  whether  the  destructive,  jealous  frenzy  of  the  com- 
munistic mob  shall  be  incited  to  smash  the  fortunes, 
wreck  the  property  and  sweep  all  to  common  ruin? 

The  socialistic  formula  of  reward  for  conspicuous 
success  is:  "Condemnation  and  anathema,  hades  and 
perdition." 

What  can  railroad  men  know  about  railroad  man- 
agement in  comparison  with  the  wisdom  of  that  self- 
inspired  government  that  will  take  control  with  the 
triumph  of  socialism? 


CHAPTER  XVIII. 

TRUSTS  AND  COMBINATIONS. 

Their  Place  in  Competition  and  How  it  Can  be  Maintained — 
Benefits  for  the  Public  the  Test — Who  Consumes  the 
Products  and  Why — Equality  for  all  under  the  Law — 
Duty  of  Government. 

What  about  the  trusts  and  the  big  corporations 
which  control  industries,  crush  out  all  opposition  and 
plunder  the  public?  Can  there  be  any  possible  defense 
or  excuse  for  their  existence,  and  is  it  not  the  plain 
duty  of  the  government  to  crush  them? 

The  trouble  with  this  question  is  that  it  assumes 
so  much  that  is  not  true,  never  has  been  true,  and 
never  will  be  true  in  human  affairs.  It  is  easy  enough 
to  quote  examples  of  the  alleged  doings  of  particular 
concerns  with  exceptional  conditions,  and  argue  that 
all  others  must  be  the  same,  but  this  is  neither  scien- 
tific or  in  any  sense  logical.  The  economic  principles 
that  must  rule  in  all  business  operations  are  clear, 
fixed  and  unchangeable.  If  these  are  ignored,  failure 
will  come  to  the  philanthropist  as  quickly  as  to  the 
greedy  robber. 

The  so-called  trust  corporations  at  present  are 
denounced  by  the  hysterical  wise  ones  in  almost  the 
identical  language  used  against  the  partnerships  and 
small  corporations  a  century  ago.  It  is  assumed  at 
the  outset  that  the  intentions  are  criminal  or  why 
would  they  combine?  There  are  exactly  the  same 
charges  to  the  effect  that  competition  is  to  be  sup- 

(163) 


164  THE  GOSPEL  OF  GREED 

pressed,  the  public  plundered  and  the  workers  forced 
to  slavery.  Experience  proved  the  folly  of  such  pre- 
dictions in  the  past,  and  they  are  no  less  absurd  at 
present. 

In  the  first  place,  the  term  competition  is  used  as 
a  fetish  to  be  worshiped,  with  only  the  vaguest  idea 
of  what  it  means.  If  there  is  to  be  any  benefit  what- 
ever to  the  public  for  improved  service,  the  individuals 
who  introduce  the  changes  must  gain  at  the  expense 
of  the  others,  and  the  competition  will  necessarily  be 
more  or  less  destructive  for  the  non-progressive  con- 
cerns. With  conditions  fairly  equal  for  all,  no  amount 
of  competition  in  numbers  could  bring  any  improve- 
ments, and  the  dead  level  would  continue.  The 
power  looms  and  the  factory  system  killed  off  thou- 
sands of  hand-loom-weaving  competitors,  but  was  the 
result  a  benefit  or  otherwise?  There  is  the  mad 
jealousy  that  will  ruin  itself  to  undersell  and  injure  a 
competitor,  and  for  this  kind  of  competition  the  public 
must  pay  in  the  end,  without  any  special  benefit. 
Real  competition  that  means  something  is  the  ability 
of  the  few  to  devise  new  methods  or  systems  that  will 
give  better  values  or  better  service.  This  kind  of 
competition  will  continue  in  some  form  as  long  as 
greed  for  gain  remains  as  an  element  in  human  nature. 

But  there  is  the  feature  of  large  capital  combina- 
tions counting  hundreds  of  millions.  What  chance 
is  there  for  competition  against  such  odds? 

This  is  a  poser  for  the  amateur  business  authorities, 
but  practical  knowledge  of  business  recognizes  plenty 
of  chances.  It  is  safe  to  say  that  one-half  at  least  of 
the  business  houses  in  good  standing  today  started, 


TRUSTS  AND  COMBINATIONS  165 

less  than  twenty-five  years  ago,  in  the  face  of  greater 
odds  in  proportion  from  the  capital  and  standing  of 
the  concerns  who  were  then  the  leaders. 

It  must  be  remembered  always  that  a  hundred 
millions  piled  away  in  a  bank  vault  are  as  worth- 
less as  a  hundred  thousand  laborers  unemployed. 
The  results  can  come  only  when  the  directing  intelli- 
gence combines  the  two.  Given  the  right  kind  of 
ability,  the  control  of  a  hundred  millions  will  work 
for  better  results  than  the  use  of  one  million.  But 
on  the  contrary,  with  the  wrong  kind  of  control  the 
results  would  be  far  otherwise.  If,  for  example,  the 
big  concern  makes  a  mistake  in  figuring  and  sells  at 
less  than  cost,  the  loss  on  a  percentage  basis  will 
dissipate  the  larger  amount  just  as  surely  and  quickly 
as  the  same  cause  would  operate  for  the  smaller  sum. 
The  hundred  millions  will  go  just  as  quickly  as  the 
one  million  or  the  one  thousand. 

A  few  years  ago  there  was  a  mania  for  trust  organ- 
izations in  the  industries  because  of  the  big  results 
promised  from  saving  expenses,  and  possibly  some 
idea  of  holding  better  prices  for  selling.  The  list  of 
such  organizations  counted  up  in  hundreds.  But  it 
soon  developed  that  there  was  trouble  for  the  man- 
agement. Excellent  captains  for  companies  do  not 
always  make  good  army  commanders.  It  was  easy 
enough  to  combine  the  capital  values,  but  there  was 
no  way  of  merging  the  brain  power  into  the  superior 
ability  needed  for  control  on  the  enlarged  scale.  It 
was  soon  proved  that  the  success  of  the  big  organiza- 
tions depended  on  the  ability  of  the  management, 
just  the  same  as  for  the  single  establishment.  If  the 


166  THE  GOSPEL  OF  GREED 

best  brains  remained  outside  the  trusts,  the  latter 
soon  had  competition  enough,  and  either  lost  control 
or  disappeared.  So  it  followed  that  instead  of  the 
hundreds  of  trusts,  with  more  organizing,  of  twenty 
years  ago,  the  present  list  of  big  corporations  that 
can  be  rated  as  successful  in  a  business  way  will  hardly 
run  into  dozens,  with  the  success  in  every  case  due 
to  exceptional  ability  for  management  and  not  to 
combination  of  capital. 

Only  a  few  years  ago  there  were  emphatic  demands 
for  legislation  to  suppress  big  department  stores  which 
threatened  to  absorb  or  destroy  regular  retail  stores 
in  the  different  lines.  Property  owners  were  in  wild 
alarm  at  the  prospect  of  miles  and  miles  of  deserted 
streets  where  the  retail  stores  flourished.  The  ama- 
teur authorities  had  it  all  figured  out,  but  business 
common-sense  went  ahead  in  its  own  way  to  give  the 
best  results  possible  and  hold  a  share  of  the  business. 
Some  of  the  department  stores  prospered,  while  others 
failed,  and  there  was  no  lack  of  competition  on  any 
basis  of  capitalization  called  for.  But  where  in  any 
city  or  town  in  the  country  are  the  miles  of  deserted 
business  streets? 

In  this  as  in  all  other  human  affairs  there  are  the 
opposing  qualities  or  conditions.  The  product  of  the 
skilled  artizan  has  characteristics  of  quality  or  style 
or  merit,  with  corresponding  cost.  The  factory  prod- 
uct for  lower  cost  must  sacrifice  something  of  the 
desirable  features  of  the  hand-made  article.  The  indi- 
vidual establishment  being  controlled  .by  a  single 
management,  can  take  advantage  of  opportunities  and 
is  more  directly  interested  in  the  results.  The  big 


TRUSTS  AND  COMBINATIONS  167 

combination  gains  something  in  the  matter  of  buying 
and  the  expense  of  selling,  but  must  sacrifice  a  good 
deal  in  the  important  feature  of  supervision  and 
management  as  well  as  other  details. 

The  opposing  forces  must  work  out  the  results  as 
they  always  have  done  and  always  will  do.  The 
best  article  at  the  lowest  cost  or  the  best  service  to 
the  public  will  win  the  business  and  the  profits,  whether 
it  comes  from  the  big  trust  corporation,  the  small 
factory  or  the  skilled  artizan.  So  if  inventors  could 
devise  new  methods  of  refining  oil,  or  refining  sugar, 
making  paper,  making  steel,  tanning  leather,  working 
textiles  or  any  other  industrial  product  at  a  material 
reduction  on  cost,  they  could  control  the  markets 
by  giving  more  to  the  public,  and  pile  up  great  fortunes 
before  the  big  corporate  organizations  could  change 
their  methods  to  meet  the  new  conditions.  The 
quoted  market  prices  for  industrial  corporation  stocks, 
paying  big  dividends  as  compared  with  other  invest- 
ment securities,  indicate  clearly  the  financial  judgment 
as  to  the  risks  of  changing  conditions,  blunders  of 
management  or  increasing  competition. 

The  great  industrial  leaders  with  all  their  alleged 
powers  are  not  immortal;  there  can  be  no  monopoly 
of  brains.  Wherever  one  can  lead  plenty  of  others  can 
follow.  If  there  are  big  profits  in  evidence  in  any 
line,  greed  for  gain  will  find  the  ability  and  the  capital 
necessary  for  competition  to  get  a  share.  The  only 
thing  that  can  tend  to  prevent  such  competition  would 
be  a  policy  of  government  regulation  to  cut  down  or 
limit  the  possible  profits.  Such  action  surely  scares 
off  competition,  and  so  strengthens  the  control  of  the 


168  THE  GOSPEL  OF  GREED 

corporations  attacked.  Monopoly  features  or  at- 
tempted extortion  are  always  incidents,  and  need 
never  be  considered  as  basic  principles  in  any  economic 
investigations,  as  they  remedy  themselves. 

Of  all  the  alarming  and  terrifying  predictions  about 
the  domination  of  the  trusts  and  the  ruin  for  the 
people  that  were  set  forth  in  the  political  campaigns 
of  twenty  years  ago,  how  much  was  ever  realized? 
Trusts  flourished  and  decayed.  Some  attempted 
high-handed  measures  in  advancing  prices,  which 
quickly  turned  the  business  to  competitors.  Of  the 
few  strong  concerns  remaining  as  big  corporations,  not 
even  the  strongest  has  been  able  to  hold  the  proportion 
of  business  that  it  had  ten  years  ago,  and  not  one  can 
dictate  prices  for  the  product  without  taking  into 
account  the  increasing  competition.  This  statement 
will  no  doubt  be  questioned,  but  investigation  will 
prove  it  true. 

Some  of  the  advanced  scientific  socialists  now 
deprecate  the  old  notion  of  "Smashing  the  trusts," 
for  as  one  authority  says:  "It  would  lead  to  nothing 
but  anarchy  and  confusion.  It  would  turn  the  wheels 
of  progress  backward,  relegate  us  again  to  the  days 
of  cut-throat  competition  and  business  anarchy,  and 
rob  industrial  society  of  all  the  benefits  of  combination 
and  progress.  It  would,  in  short,  attempt  the  in- 
sanely mischievous  as  well  as  the  utterly  impossible." 

It  is  insisted,  however,  that  the  benefits  now  go  to 
the  capitalistic  robbers  to  pile  up  their  enormous 
fortunes,  while  with  socialism  in  possession  the  toilers 
or  producers  would  get  five  times  what  they  now 
receive.  Just  how  the  public  as  buyers  would  benefit 


TRUSTS  AND  COMBINATIONS  169 

from  this  arrangement  is  not  explained,  though  it  is 
intimated  that  they  would  also  get  all  the  robbers' 
profits  in  lower  prices.  Arguing  both  ways  is  easy  for 
socialistic  logic. 

This  idea  of  the  robbers'  profits  with  diminishing 
wages  is  the  hobby  of  all  the  reformers,  and  they  can 
quote  pages  of  figures  to  prove  it.  But  there  is  one 
mountain  of  fact  that  stands  firm,  no  matter  how  per- 
sistently or  carefully  it  is  shut  off  from  the  view. 

It  is  admitted  by  all  that  there  has  been  an  enorm- 
ous increase  in  the  wealth  production  which  may  be 
placed  at  five-fold  in  fifty  years.  If  we  admit,  for 
the  sake  of  the  argument,  all  that  can  be  claimed  for 
the  "enormous  fortunes  wrung  from  toil,"  it  must  be 
admitted  in  return  that  the  fortunes  can  come  only 
from  the  sale  of  the  products  which  give  the  profits. 
It  is  manifest  that  if  the  products  are  not  sold  there  can 
be  no  profits  and  no  enormous  fortunes.  In  the 
manufacturing  industries,  where  the  trusts  have  most 
control,  and  are  supposed  to  do  most  of  their  robbing, 
the  grand  total  of  production  according  to  the  census 
of  1905,  was  $14,802,147,087.  There  were  imports 
and  exports  in  addition,  but  they  were  small  relatively 
and  may  be  assumed  to  nearly  balance  each  other. 
This  increase  in  production  was  nearly  30  per  cent 
over  the  total  value  for  1900,  and  nearly  68  per  cent 
over  1890,  a  portion  of  the  increase  being  higher 
values  for  the  products. 

Now  what  became  of  these  products?  Who  were 
the  buyers  or  consumers,  and  how  much  of  the  total 
was  consumed  by  the  capitalistic  robbers  and  the 
predatory  rich? 


170  THE  GOSPEL  OF  GREED 

It  is  argued  with  a  parade  of  figures  that  1  per  cent 
of  the  poulation  owns  fully  90  per  cent  of  all  the  wealth, 
leaving  only  10  per  cent,  for  all  the  others  who  are 
being  steadily  reduced  to  the  extreme  of  pauperism. 
Well,  there  are  the  totals  for  food  products  including 
flour  and  meats  amounting  to  $2,845,234,900  for  1905 
against  $2,193,791,594  for  1900  and  $1,171,165,325 
for  1890.  Did  1  per  cent  or  10  per  cent  of  the 
population  gorge  themselves  with  this  increase  of 
over  $650,000,000  worth  in  five  years,  or  $1,674,000,- 
000  worth  in  fifteen  years,  or  did  some  of  the  paupers 
get  an  extra  bite  or  two? 

Textiles  increase  from  $1,261,672,504  in  1890 
to  $1,628,606,214  in  1900,  and  to  $2,147,441,418  in 
1905.  Did  1  per  cent  or  10  per  cent  of  the  population 
wear  out  all  this  extra  production,  leaving  less  for  the 
90  per  cent  of  paupers?  The  iron  and  steel  group  of 
products  increased  from  $1,144,056,537  in  1890  to 
$1,806,278,241  in  1900,  and  to  $2,176,739,726  in  1905. 
Leather  products  increased  from  $487,556,030  in!890 
to  $569,619,254  in  1900,  and  to  $705,747,470  for  1905. 
These  products  together  with  the  products  of  all  the 
other  industries  that  might  be  mentioned  in  detail  were 
sold  and  consumed,  and  up  to  the  time  that  trust  and 
combination  smashing  was  revived  as  a  political  issue 
in  1907  as  likely  to  catch  voters,  there  was  an  active 
demand  with  no  surplus  in  any  line  in  the  markets. 

It  is  further  insisted  that  the  cost  of  living  has 
greatly  advanced,  making  the  people  relatively  poorer 
with  more  going  to  the  trust  robbers.  But  the  robbers 
actually  sold  their  products  in  larger  quantities  than 
ever  before  and  the  mass  of  the  people  as  buyers 


TRUSTS  AND  COMBINATIONS  171 

evidently  had  money  enough  to  pay  for  the  same. 
They  were  able,  moreover,  to  make  an  astonishing 
increase  in  the  savings  bank  deposits,  the  building 
associations  and  other  forms  of  investment. 

Is  all  this  an  evidence  of  pauperism  and  robbery 
according  to  the  fool  notions  or  the  able-bodied  lying 
of  the  amateur  business  authorities,  or  is  it  just  a  plain 
proof  of  the  common-sense  buisness  principle  that  in- 
creased wealth  creation  by  the  brains  of  the  leaders 
must  mean  more  to  be  distributed,  more  employment, 
more  earnings  and  more  general  prosperity  for  all? 

Is  this  net  result  so  horrifying  as  to  warrant  the 
immediate  destruction  of  all  the  capitalistic  robbers? 

The  benefits  of  combination  and  progress,  from 
whatever  source  they  come,  must  be  shared  by  all, 
but  even  from  the  scientific  socialist's  point  of  view, 
why  cut  off  the  robbers  in  the  middle  of  their  career  of 
developing  these  benefits  of  combination  and  progress? 
Such  results  never  came  in  any  other  way,  and  why  not 
wait  a  little  before  throwing  the  robbers  out  and  taking 
possession,  to  see  if  they  cannot  develop  even  more 
benefits  with  larger  swollen  fortunes,  so  that  there  will 
be  so  much  more  to  take  and  divide  with  the  triumph 
of  socialism? 

What,  then,  is  the  plain  duty  of  the  government 
for  promoting  the  general  welfare  as  far  as  dealing  with 
trusts  or  combinations  is  concerned? 

The  answer  must  be  that  the  wealth  production 
should  be  encouraged.  If  it  is  possible  by  any  means 
to  get  more  products  or  better  service  at  lower  cost, 
without  decreasing  the  earnings  of  the  workers,  the 
people  as  a  whole  are  certainly  entitled  to  all  the 


172  THE  GOSPEL  OF  GREED 

possible  benefits,  whether  coming  from  individuals, 
partnerships,  corporations,  or  great  trust  organiza- 
tions. The  men  in  control  of  the  big  corporations 
are  no  better  or  worse  on  the  average  than  the  man- 
agers of  smaller  concerns,  though  larger  operations 
require  more  broad-minded  views.  All  are  striving 
with  the  incentive  of  greed  for  gain  to  please  the  pub- 
lic, and  get  more  business. 

Corporations  are  no  doubt  as  often  in  the  wrong 
as  are  the  smaller  concerns  or  the  individuals,  and 
should  feel  the  heavy  hand  of  the  law  for  any  evil 
doings  in  the  same  way.  This  is  fully  recognized  in 
collection  laws  or  bankruptcy  proceedings,  where  the 
biggest  of  the  corporations  must  answer  the  same  as 
the  poorest  individual,  and  there  is  no  valid  reason 
why  there  should  be  any  discrimination  with  other 
laws.  Punish  the  corporations,  or  the  corporation 
managers,  to  the  limit  if  they  are  offenders  by  inter- 
fering in  any  way  with  the  equal  rights  of  others,  but 
do  not  tolerate  vicious  attacks  on  the  big  concerns 
simply  because  they  are  big.  Leave  them  free  to 
work  out  their  salvation  in  a  business  way  with  the 
competition  they  must  surely  meet.  If  they  can  win 
in  serving  the  public  they  are  fairly  entitled  to  the 
biggest  of  big  fortunes  as  a  reward.  If  others  can  do 
better,  the  big  fortunes  will  go  the  way  of  all  others 
since  commercialism  was  known  in  history. 

Accumulations  of  capital  and  control  of  labor  as  the 
factors  for  wealth  creation  will  always  and  every- 
where ultimately  go  to  the  brain  power  which  can 
utilize  the  same  for  the  best  results.  Socialistic 
jealous  envy  or  the  conceit  of  fatuous  ignorance  which 


TRUSTS  AND  COMBINATIONS  173 

assumes  to  instruct,  may  not  be  able  to  understand 
this,  but  it  is  one  of  the  eternal  verities  of  commercial- 
ism that  is  the  basis  for  all  human  progress. 

One  plain  duty  of  government  that  is  neglected  in 
the  laws  as  we  have  them  is  a  proper  protection  for 
the  rights  of  the  minority  stockholders  in  corporations. 
With  all  the  variety  of  state  corporation  laws,  a  bare 
majority  of  the  stockholders'  vote  can  elect  directors 
who  are  allowed  to  do  pretty  much  as  they  please,  with 
no  redress  for  the  minority.  1 1  is  this  lack  of  protection 
for  invested  capital  that  makes  it  harder  to  organize 
competing  concerns  against  the  big  corporations. 
Something  in  the  way  of  a  national  incorporation  law, 
similar  to  the  National  Banking  Act,  would  be  de- 
sirable, that  would  hold  the  directors  to  a  strict  ac- 
count and  prevent  much  of  the  fraudulent  operations 
against  the  minority  stockholders.  Laws  aimed  at 
repression  can  be  nothing  but  harmful,  but  laws  to 
give  more  safety  for  investments  would  practically 
solve  the  trust  problem  by  encouraging  the  develop- 
ment of  any  competition  that  might  be  needed  against 
any  form  of  corporation. 

An  example  in  this  line  might  be  mentioned  in  the 
admitted  failure  of  the  Sherman  law  for  preventing 
combinations  in  restraint  of  trade.  This  law  was 
aimed  at  the  numerous  trust  organizations  then  ex- 
isting, and  was  intended  to  please  the  anti-trust  ranters. 
The  result,  however,  was  the  reverse  of  the  expecta- 
tions for,  as  progress  cannot  go  backward,  the  trusts 
were  forced  to  the  more  compact  form  of  the  big 
corporations  including  all  the  interests. 

The  trust  idea  as  retained  in  England  and  Ger- 


174  THE  GOSPEL  OF  GREED 

many  without  legislative  interference  gives  more 
freedom  for  the  individual  concerns  as  parts  of  the 
trust,  and  there  is  more  incentive  for  improvements, 
the  managers  being  something  more  than  high  salaried 
employes  of  a  single  corporation. 

There  is  no  question  as  to  the  fact  that  the  trust 
forms  give  better  results,  and  the  remarkable  progress 
of  the  German  export  trade  is  due  very  largely  to  the 
work  of  these  organizations  which  handle  the  general 
features  of  the  business,  buying  and  selling,  while 
leaving  the  constituent  concerns  in  control  ot  their 
own  establishments. 

The  Sherman  law  hits  at  labor  unions  and  other 
associations,  and  changes  are  now  demanded  to  do 
away  with  objectionable  features. 

This  is  the  usual  result  from  reformers'  interference 
with  business  matters  of  which  they  know  nothing. 
They  can  force  legislation  but  cannot  change  business 
principles  or  human  nature. 


CHAPTER  XIX. 

LANDLORDISM  AND  TAXATION. 

Single  Tax  Delusions  and  Absurd  Claims — Uses  and  Values 
of  Land — A  Form  of  Capital  for  Wealth  Production — 
Why  Some  Land  is  Not  in  Use — A  Reform  Needed. 

There  are  numerous  other  questions  of  govern- 
mental policy  to  be  considered  and  all  may  be  tested 
by  the  same  principle  of  wealth  production  which 
includes  about  all  that  counts  for  the  welfare  of  the 
people.  Some  of  these  great  moral  reforms  that  are 
being  urged  are  landlordism  with  the  so-called  single 
tax  remedy,  inheritance  laws  for  taking  portions  of 
bequests,  changes  in  banking  methods,  and  others 
that  might  be  mentioned.  All  of  the  proposed  reforms 
have  their  enthusiastic  advocates  with  the  usual  feature 
that  the  would-be  reformers  are  rank  outsiders  with 
no  practical  knowledge  of  the  methods  they  would  over- 
turn. No  attempt  will  be  made  at  this  time  to  discuss 
these  questions  further  than  to  indicate  a  few  points 
showing  how  the  general  rule  of  benefit  from  com- 
mercialism must  apply. 

Take  landlordism,  for  example,  which  is  held  up 
as  the  gigantic  robber  of  all,  and  the  crushing  evil  for 
humanity.  The  so-called  single  tax  remedy  of  which 
Henry  George  was  the  apostle,  while  it  pleased  some 
of  the  unthinking,  never  appealed  to  the  common 
sense  of  the  people,  and  has  practically  gone  the  way 
of  thousands  of  other  brilliant  theoretical  visions. 

The  argument  against  landlordism  was  in  effect: 

(175) 


176  THE  GOSPEL  OF  GREED 

1.  Access  to  land  is  necessary  for  the  existence  of 
every  human  being. 

2.  Landlordism,  or  private  ownership,   prevents 
free  access  to  land. 

3.  Therefore  landlordism  is  the  arch  enemy  that 
would  destroy  humanity. 

Here  is  the  old  familiar  trickery  of  the  defective 
middle  in  the  logical  syllogism,  as  the  terms  access  to 
land  in  the  first  and  free  access  to  land  in  the  second, 
have  very  different  meanings.  It  is  explained  at  the 
outset  by  Henry  George  himself  that  in  order  to  get 
any  benefit  from  land  there  must  be  absolute  security 
of  possession.  A  man  must  have  assurance  that  he 
will  reap  or  he  will  not  sow.  The  man  who  builds 
a  house  must  know  that  he  can  occupy  it  against  all 
others.  As  soon  as  one  individual  assumes  or  acquires 
possession  of  a  piece  of  land  there  can  be  no  free  access 
for  any  others,  and  landlordism  in  some  form  must 
prevail.  There  must  be  some  way  for  deciding 
possession,  either  by  force  or  law,  and  some  way  of 
transferring  possession  when  desired. 

What  is  wanted  from  land  ? 

Obviously  the  old  answer:  of  best  service  to  the 
people  in  the  production,  giving  food,  clothing  and 
shelter. 

How  will  this  be  obtained? 

Obviously  again  the  old  answer:  let  greed  for  gain 
do  its  work. 

The  man  who  wants  possession  of  a  piece  of  land 
figures  on  possible  profits  from  its  use.  These  profits 
can  come  only  from  products  sold  to  the  public  in 
some  form  or  some  service  rendered  to  the  public  on  the 


LANDLORDISM  AND  TAXATION  177 

land.  The  value  is  thus  determined  by  the  men  who 
can  devise  the  best  plans  for  the  most  value  from  the 
soil  or  the  best  service  in  other  ways,  and  there  must 
always  be  the  feature  of  security  of  possession  to  carry 
out  the  plans  through  a  series  of  years.  How  much 
has  been  written  in  a  scientific  way  about  the  economic 
laws  of  rent  and  land  values,  but  the  only  common 
sense  rule  is  that  the  value  is  always  determined  by 
the  profits  from  the  use  of  the  land.  So  like  the  big 
fortunes  in  other  lines,  the  high  values  for  land  are 
always  a  proof  of  the  service  given  to  the  public,  from 
which  the  profits  come.  Values  change  according  to 
the  ideas  of  individuals  who  see  chances  for  profit 
from  the  use  of  the  land,  and  not  by  anything  in  the 
nature  of  a  general  law. 

It  is  not  even  a  question  of  population  giving  value, 
for  the  most  densely  populated  sections  are  usually 
lower  in  value  than  other  parts  of  a  city  where  land  is 
held  for  other  uses  than  dwellings  of  the  tenement 
order.  In  large  cities  where  there  are  chances  for 
serving  a  larger  number  of  people  and  making  more 
profits,  the  land  values  will,  of  course,  be  higher  than 
in  smaller  towns. 

But  why  do  some  cities  grow  while  others  with 
equal  natural  advantages  of  location  decline? 

Simply  because  the  land  owners  or  land  users  in  one 
offer  better  inducements  than  in  the  other  to  attract 
the  increased  population,  thus  proving  that  land  values 
like  all  other  values  are  due  to  individual  effort  and 
not  to  vague  general  causes.  Population  goes  where 
there  is  promise  of  profit. 

The  facts  concerning  land  values  are  so  clear  and 


178  THE  GOSPEL  OF  GREED 

unmistakable  that  the  apostle  of  the  Single  Tax  when 
it  came  to  applying  his  wonderful  remedy  was  obliged 
to  face  about  and  contradict  all  the  preceding  chapters 
about  the  terrible  powers  of  landlords  for  extortion, 
oppression  and  driving  people  off  the  earth.  If  the 
landlords  had  such  powers  they  could  easily  force  the 
tenants  to  pay  any  single  or  double  tax  that  could  be 
levied.  So  it  had  to  be  shown  that  the  rental  values 
were  always  fixed  by  the  competition  of  the  tenants 
desiring  possession,  and  that  the  landlords  could  get 
no  more  than  the  tenants  were  willing  to  pay.  Then 
when  this  rental  value  was  taken  by  the  single  tax 
the  helpless  landlords  would  be  left  with  the  empty 
shell  of  the  title  while  the  kernel  of  value  would  go  to 
the  state.  All  the  ranting  about  the  tyranny  and  rob- 
bery of  the  landlord  monopoly  was  therefore  a  waste 
of  wind  in  the  argument. 

To  make  it  still  more  absurd  Henry  George  argued 
strongly  against  government  ownership  of  land  "with 
all  the  favoritism,  collusion  and  corruption  that  it 
would  involve."  He  would  leave  the  monstrously 
greedy  landlords,  as  first  portrayed,  in  possession  of 
the  empty  titles,  and  was  sure  that  they  would  be  im- 
becile enough  to  go  on  collecting  the  rental  taxes 
without  any  chance  for  profit  other  than  a  small  per- 
centage to  be  allowed  for  the  work  of  making  the  col- 
lections and  turning  the  same  over  to  the  government. 

This  claim  that  single  tax,  taking  full  rental  value, 
is  not  government  ownership  is  a  contemptible,  silly- 
billy  attempt  at  humbug.  What  human  being  would 
hold  an  empty  title  to  land  and  be  responsible  for  the 
payment  of  rental  value  by  the  tenants?  And  yet 


LANDLORDISM  AND  TAXATION  179 

this  reformer,  with  such  palpable  absurdities,  at  one 
time  had  a  large  and  fanatical  following. 

It  is  easy  for  infantile  intellects  to  note  that  the 
whole  island  of  Manhattan  could  have  been  had  for 
the  asking  a  few  hundred  years  ago,  while  the  value 
at  present,  as  New  York  City,  shows  enormous  fig- 
ures. It  is  so  naively  assumed,  on  one  hand,  that  if 
it  was  not  for  the  landlords  any  one  could  have  land 
in  New  York  now  without  cost,  and  on  the  other 
that  the  immense  difference  in  values  is  all  clear 
profit  for  the  landlords  now  holding.  Or,  in  another 
way  of  putting  it,  if  the  government  had  retained 
possession  it  would  now  have  all  the  values,  assum- 
ing that  the  individuals  would  have  gone  on  making 
the  same  improvements  that  built  up  the  city  and 
made  the  values. 

Common  sense  understands  that  holding  land  costs 
money,  and  that  money  invested  in  the  so-called 
land  monopoly,  with  all  its  assumed  privileges  for 
extortion,  does  not  return  as  much,  on  the  average, 
as  the  same  amount  invested  in  other  forms  of  prop- 
erty. The  element  of  greater  security  makes  the  land 
investments  more  attractive  at  a  lower  rate  of  profit, 
and  there  are  some  exceptional  chances  for  rapid  gains 
in  value.  Common  sense  also  understands  that  rent 
and  interest  are  practically  the  same  as  far  as  land 
holding  is  concerned,  and  that  with  the  security  of  a 
leasehold  for  possession,  there  is  no  appreciable  dif- 
ference between  paying  the  yearly  rent  or  the  yearly 
interest  on  the  amount  that  would  be  needed  for  the 
purchase. 

But  is  not  landlordism  responsible  for  the  land 


180  THE  GOSPEL  OF  GREED 

held  out  of  use  for  future  profit,  which  increases  the 
competition  for  the  other  land  in  use  and  so  adds 
to  the  rent  burden? 

This  is  one  of  the  Henry  George  delusions  more 
absurd,  if  anything,  than  his  visions  of  landlords  as 
a  class  of  horrible  man-eating  ogres.  In  the  first 
place  it  must  be  admitted  that  most  of  the  landlords 
are  human  enough  to  permit  the  use  of  their  land 
and  incidentally  take  the  profits  from  the  same. 
There  are  no  records  in  all  history  of  any  people 
being  driven  off  the  earth  into  infinite  space  by  land- 
lords who  refused  to  allow  even  standing  room  on 
their  land.  If  landlords  are  essentially  robbers,  surely 
it  must  be  necessary  for  them  to  have  tenants  whom 
they  can  rob.  But  if  tenants  are  barred  and  the 
land  held  out  of  use,  there  can  be  no  possibility  of 
robbery  or  profit  in  any  form.  There  may  be  pros- 
pective profit  from  use  in  the  future,  but  this  must 
mean  better  uses  than  are  offered  at  present.  A  lot 
owner  holding  out  for  a  prospective  business  build- 
ing might  refuse  to  allow  the  use  for  a  cheap  shed 
that  would  tend  to  prevent  the  more  profitable  build- 
ing. If  the  ideas  of  the  owner  are  finally  realized  in 
the  business  building,  the  larger  profits  will  be  proof 
of  the  better  service  to  the  public. 

With  any  kind  of  government  control,  ordinary  in- 
telligence in  management  would  hold  certain  portions 
of  the  land  for  development  according  to  some  general 
plans  for  the  whole.  Fine  residences,  boiler  shops  and 
glue  factories  would  not  be  forced  to  take  adjoining 
lots,  and  some  spaces  would  be  left  open  for  future 
use  in  the  different  localities  to  which  the  different 


LANDLORDISM  AND  TAXATION  181 

classes  were  assigned.  Reformers  who  never  owned 
a  lot  of  land  cannot  understand  why  there  should  be 
any  reservations  as  to  buildings  or  use.  They  con- 
demn the  land  owners  as  obstructionists,  and  would 
force  building  improvements  long  before  there  was 
any  chance  for  tenants. 

Did  any  human  being  at  any  time  or  place  on  earth 
ever  want  the  use  of  a  piece  of  land  and  not  be  able 
to  get  something  that  would  answer  his  purpose  at 
a  price  he  was  willing  to  pay?  If  not,  where  is  the 
monopoly  feature  or  the  injury  from  land  held  out  of 
use? 

Then,  strange  as  it  may  appear  to  the  reformers, 
holding  land  out  of  use  is  expensive  and  risky  busi- 
ness for  the  holders.  There  is  loss  of  interest  on  the 
value  of  the  investment,  and  the  taxes  and  assess- 
ments that  must  be  paid,  so  that  the  differences  in  the 
selling  prices  are  by  no  means  all  profits.  There  are 
big  losses  more  often  than  big  profits.  But  this  is 
a  detail  of  the  spirit  of  commercialism  that  high- 
minded  reformers  would  not  condescend  to  consider. 

With  government  ownership  of  land,  there  would 
be  the  trouble  and  uncertainty  about  the  leases,  with 
all  the  chances  for  favoritism  and  corruption.  Secu- 
rity of  possession  would  be  lacking,  and  greed  for 
gain  would  find  little  inducement  for  developing  the 
land  for  the  best  service  to  the  public,  to  give  the 
largest  profits.  The  city  or  the  government  in  the 
meantime  would  lose  all  the  income  from  taxes  on 
the  land  not  occupied  and  not  productive,  as  well  as 
the  taxes  on  the  greater  value  of  the  improvements 
that  would  be  made  by  the  individual  owners  look- 


182  THE  GOSPEL  OF  GREED 

ing  for  profits.  The  common  sense  of  commercialism 
figures  all  these  factors,  while  the  visionary  arguing 
of  the  superior  beings  who  scorn  practical  details  gets 
the  usual  blue-moonshine  results. 

Another  cross-eyed  mental  freak  is  the  notion  that 
land  should  be  classed  as  an  independent  factor  in 
wealth  production,  with  the  formula:  land,  labor  and 
capital,  the  land  being  the  first  in  importance.  There 
could  be  no  human  existence  or  wealth  production 
of  any  kind  without  land,  it  is  true,  but  air  and  water 
are  equally  as  necessary,  so  why  not  include  these 
as  factors?  In  economic  discussion,  the  term  materi- 
als is  used  to  represent  all  the  products  from  the  land 
that  are  of  use  for  wealth  production.  But  as  the 
control  or  ownership  of  the  materials  can  be  trans- 
fered  or  exchanged,  the  materials  are  properly  con- 
sidered as  a  form  of  wealth  to  be  included  in  the 
term  capital.  Then  as  the  control  of  materials  in 
their  natural  condition  necessarily  means  control  of 
the  land,  and  as  this  control  or  ownership  of  land  is 
equally  transferrable  or  exchangable,  land  is  rightly 
considered  as  another  form  of  wealth  and  included  in 
the  general  term  capital. 

If,  as  is  urged  as  a  clincher,  man  cannot  create 
more  land,  the  same  can  be  argued  for  the  animals 
found  on  the  land  which  are  as  necessary  for  human 
existence  as  other  products  from  the  land.  It  is 
admitted  that  the  animals  when  made  serviceable  are 
properly  classed  as  wealth  or  capital,  but  by  the  same 
logical  (?)  reasoning  as  applied  to  land,  the  animals 
should  be  held  under  government  control  and  rented 
for  service. 


LANDLORDISM  AND  TAXATION  183 

The  common  sense  of  every  reasoning  human  being 
understands  that  the  man  with  capital  in  any  exchang- 
able  form  can  go  to  the  ends  of  the  earth  and  at  any 
place  can  get  all  the  land  he  wants  and  all  the  labor 
he  wants  for  more  wealth  production.  If  dissatisfied, 
he  can  re-exchange  the  land  for  other  wealth  and 
again  exchange  the  wealth  for  other  land  in  other 
places.  To  argue  that  the  ownership  of  land  is  some- 
thing independent  or  different  from  other  forms  of 
capital  is  therefore  fantastic  nonsense.  Labor  can  be 
hired  and  paid  for,  but  it  is  an  independent  factor 
because  it  can  refuse  to  work,  and  having  once  been 
used  and  paid  for,  there  is  no  possibility  of  a  re-ex- 
change for  the  wages  paid.  So  common  sense  makes 
the  broad  division  between  labor  and  capital,  the  latter 
including  the  directing  brain-power  and  all  forms  of 
wealth  as  well  as  control  of  the  land  and  materials, 
while  labor  is  the  human  working  force  that  must  be 
employed  for  the  changes  that  mean  wealth  produc- 
tion for  the  various  uses  for  humanity. 

Whatever  there  is  in  the  arguments  or  claims  for 
benefit  from  single  tax  or  government  ownership  of 
land  is  included  in  a  much  more  logical,  reasonable 
and  honest  way  in  the  general  theories  of  socialism 
for  the  control  of  all  capital  and  all  labor  and  all 
forms  of  wealth  production. 

It  is  really  comical  to  note  the  wild  flights  of  fancy 
in  the  promises  of  the  great  blessings  that  would  come 
from  the  single  tax  system  in  the  extinction  of  idle- 
ness and  poverty,  always  with  the  willfully  false  sug- 
gestion that  the  unemployed  would  have  free  access 
to  land.  In  these  rhapsodies  there  is  no  reference  to 


184  THE  GOSPEL  OF  GREED 

the  tax  equal  to  the  full  rental  value  that  must  be 
paid  or  the  capital  necessary  for  appliances  and  sup- 
port of  the  workers  until  the  products  can  be  mar- 
keted. Capital  with  the  brain  power  must  be  the 
active  force  for  production  under  any  system.  If 
capital  has  to  pay  taxes  and  interest  on  land  out  of 
use,  it  will  certainly  utilize  all  that  can  be  used  with 
promise  of  profit.  If  government  takes  possession  of 
all  land,  as  it  would  have  to  with  single  tax  system, 
capital  would  rent  only  what  was  absolutely  needed, 
and  would  be  slow  about  renting  more.  Labor  would 
be  as  helpless  as  ever,  and  instead  of  the  promised 
blessings  there  would  be  less  production,  less  employ- 
ment, with  more  poverty  and  more  misery.  That  is 
the  difference  between  facts  in  a  business-common- 
sense  view  and  the  thoroughly  dishonest  humbuggery 
of  the  reformers  who  promise  tax  and  no  tax,  rent 
and  no  rent  at  the  same  time,  with  all  manner  of 
boundless  blessings. 

If  there  was  any  shadow  of  truth  in  the  wild  claims 
about  the  profits  for  landlordism,  why  in  the  name 
of  all  reason  are  land  owners  willing  to  sell,  and  so 
many  of  them  anxious  to  sell,  as  shown  by  the  sign- 
boards on  every  hand?  We  might  repeat  the  pre- 
vious question  as  to  why  the  reformers  do  not  have 
business  sense  enough  to  buy  up  some  of  this  land 
and  hold  it  as  an  anti-land-monopoly  association  for 
the  benefit  of  unemployed  labor,  giving  free  access 
to  work  out  some  of  the  glorious  blessings?  An  object 
lesson  of  this  kind  would  do  more  for  the  cause  than 
all  the  leagues  and  all  the  ridiculous  literature.  Mil- 


LANDLORDISM  AND  TAXATION  185 

lions  of  acres  of  land  out  of  use  can  be  secured  by 
tax  titles  for  the  taxes  now  unpaid. 

To  whatever  use  land  may  be  put,  either  above 
or  below  the  surface,  the  main,  important  considera- 
tion is  the  results  for  the  public  benefit,  and  in  every 
instance  the  best  results  will  determine  the  ownership 
of  land  just  as  it  does  of  all  other  forms  of  property 
through  the  competitive  action  of  greed  for  gain.  It 
is  of  little  consequence  whether  the  holdings  of  indi- 
viduals or  concerns  are  large  or  small,  or  whether 
particular  pieces  were  held  for  one  hundred  years  by 
one  owner  or  by  one  hundred  owners  for  one  year 
each,  the  actual  uses  of  the  land  will  fix  the  value 
and  give  the  control.  The  successful  will  buy  and 
the  failures  will  be  sold  out  as  always  was  and  always 
will  be,  world  without  end,  no  matter  what  all  the 
reformers  who  ever  reformed  may  say,  think  or  imagine. 

It  would  be  considered  a  foolish  waste  of  time  to 
argue  seriously  that  the  celebrated  cow  of  Mother 
Goose  fame  could  not  really  jump  over  the  moon 
and  land  back  on  earth  again  without  more  or  less 
injury  to  her  usefulness  for  the  milk  trust,  but  some 
of  the  single  tax  arguments  fairly  outdo  the  exploit 
of  the  moon-jumping  cow.  Take  the  following  for 
example,  from  a  recent  publication: 

"If  the  entire  public  revenue  was  derived  from  ground 
rents,  all  other  taxes  being  abolished,  the  burden  now  unjustly 
borne  by  the  mass  of  the  people,  including  a  large  majority 
of  the  landlords  themselves,  would  be  borne  by  about  fifty 
thousand  of  the  largest  landlords  who  now  own  about  thirty 
per  cent  of  the  land  values  of  the  country.  And  the  burden 
now  borne  by  those  least  able  to  bear  it  would  scarcely  be  felt 
by  these  rich  landowners." 


186  THE  GOSPEL  OF  GREED 

Now  what  does  this  mean  in  plain  language? 
Waiving  the  question  as  to  whether  the  public  should 
pay  the  taxes  which  are  expended  for  public  benefit, 
and  waiving,  also  the  rank  falsehood  about  the  fifty 
thousand  owning  thirty  per  cent  of  the  land  values, 
there  remains  the  proposition  to  make  the  rich  land- 
owners pay  it  all.  But  what  constitutes  the  riches 
of|these  rich  landlords  if  not  the  land  values?  But 
these  values  are  necessarily  determined  by  the  rents, 
actual  or  prospective,  that  come  from  the  tenants. 
Now  if  single  tax  takes  these  rental  values,  what  is 
left  for  the  holding  values  for  the  rich  landowners, 
and  how  will  they  be  able  to  pay  the  taxes?  The  land- 
lords are  to  be  wiped  out  for  the  benefit  of  the  ten- 
ants when  the  state  takes  the  values,  but  at  the  same 
time  they  are  to  remain  in  all  their  glory  and  power 
when  it  comes  to  paying  the  taxes  that  will  scarcely 
be^felt  by  them  when,  in  fact,  they  have  no  income. 
Is  not  this  kind  of  nursery  logic  rare  sport  enough  to 
make  the  little  dog  laugh  and  all  the  dishes  to  run 
away  with  the  spoons? 

Naturally  also,  as  might  be  expected  from  this 
brand  of  philosophy,  there  is  the  same  old  delusion 
about  the  fixed  amount  to  be  divided,  and  here  it  is: 

"There  are  three  factors  engaged  in  producing  wealth:  land, 
labor  and  capital.  There  are  three  channels  in  which  it  is  dis- 
tributed: rent,  wages  and  interest.  This  being  so  it  is  clear 
that  the  more  wealth  goes  to  rent  the  less  remains  for  wages  and 
interest.  Every  advance  in  rent  (and  it  is  constantly  advancing) 
is  made  at  the  expense  of  wages  and  interest." 

Why  do  not  these  wise  authorities  consult  with 
some  office  boy  or  truck  driver  before  evolving  their 


LANDLORDISM  AND  TAXATION  187 

theories?  If  they  did  they  would  learn  that  the  man 
undertaking  a  business  venture  usually  invests  part 
of  his  capital  in  the  land  needed,  or  arranges  for  hold- 
ing on  satisfactory  terms.  The  next  step  is  to  employ 
labor  for  building  the  plant.  Labor  is  also  regularly 
employed  and  paid  its  full  demands  until  such  time 
as  the  product  is  ready  for  the  market.  Then  the 
employer  must  take  the  risk  of  selling  at  such  prices 
as  he  can  get.  He  expects  a  profit,  of  course,  but 
he  may  have  to  sell  at  a  loss.  But  the  labor  is  paid 
just  the  same  at  the  union  rates  established.  The 
successful  concerns  making  big  profits  pay  no  more 
and  the  losing  or  failing  concerns  pay  no  less.  In- 
stead of  rent  coming  first,  it  is  really  the  last,  and  there 
may  be  something  or  nothing  left  for  this  part  of  the 
capital  invested. 

Every  human  being  who  has  ever  tried  to  earn  a 
dollar  knows  absolutely  that  when  profits  are  big 
there  is  a  chance  for  higher  wages,  and  with  wages 
higher  there  is  a  chance  for  higher  rents.  Conversely, 
when  profits  shrink  there  must  be  less  earnings  even 
if  rates  of  wages  are  maintained,  and  rents  must 
decline  in  proportion.  When  any  one  ever  hears  of 
rents  advancing  while  wages  and  interest  are  decreas- 
ing, he  can  look  to  see  a  sky-full  of  cows  jumping 
over  millions  of  moons,  with  all  the  little  dogs  laugh- 
ing at  such  sport. 

The  reform  needed  from  government  for  land  and 
landlordism  is  not  confiscation  or  control  in  any 
form,  but  rather  more  opportunities  for  the  greed 
of  commercialism  to  do  its  work  of  utilizing  the  land 
for  the  largest  profits,  which  means  best  service  and 


188  THE  GOSPEL  OF  GREED 

highest  values  for  taxation.  For  this  end  there  should 
be  a  better  system  for  transferring  ownership.  Land 
titles  should  be  as  easy  of  exchange  as  other  forms 
of  property.  There  must  be  security  and  legal  forms, 
of  course,  with  proper  records,  but  these  could  be 
greatly  simplified  and  in  addition  a  guarantee  given 
for  the  titles  transfered  as  against  any  ancient  claims 
affecting  the  same.  The  laws  and  customs  at  pres- 
ent would  seem  to  be  arranged  with  a  view  to  dis- 
couraging any  transfers  of  titles. 

Much  of  the  land  which  is  said  to  be  held  out  of 
use  by  the  strange  class  of  human  freaks  who  pay 
taxes  and  costs  while  refusing  income,  now  remains 
idle  because  of  questions  concerning  the  titles  which 
prevent  transfers  to  those  who  would  use  it.  The 
easier  the  process  of  buying  and  selling  land,  the 
more  the  investors  would  be  likely  to  take  chances 
for  making  improvements,  meaning  service  for  the 
people  either  of  a  temporary  or  permanent  character. 

This  is  the  same  old  story,  told  and  re-told  when- 
ever and  wherever  labor  is  induced  by  the  demagog- 
promises  in  all  their  variety  of  allurements  to  join 
in  the  movements  for  smashing  capital  or  profits. 
The  results  are  always  the  same  in  the  panics  and 
depressions.  Capital  must  make  extra  profits  in  pros- 
perous seasons  when  common  sense  rules,  to  carry 
over  the  panic  periods  when  the  lunatics  are  smash- 
ing things  with  the  frightful  cost  to  labor. 

But  will  labor  ever  learn? 


CHAPTER  XX. 

BANKS  AND  BANKING. 

Principles  the  same  as  for  Other  Lines  of  Business — High 
Standard  Maintained  and  Few  Exceptions — The  Legisla- 
lation  Needed — Grand  Opportunities  for  Practical  Re- 
formers to  Prove  Their  Wisdom. 

The  subject  of  banks  and  banking  would  need  a 
volume  of  its  own  for  a  discussion,  but  it  may  be 
remarked  in  passing  that  greed  for  gain  and  the 
spirit  of  commercialism  works  in  this  field  as  in  all 
others,  and  always  for  the  best  results.  From  a  re- 
former's point  of  view,  bankers  may  be  as  ignorant 
and  utterly  incompetent  as  commercial  workers  in 
other  branches  of  industry,  but  common  sense  of 
practical  men  who  are  able  to  deposit  a  dollar  or  two 
occasionally  will  hold  to  the  belief  that  banking  is 
quite  an  important  business  in  its  way,  and  that  the 
bankers  as  we  have  them  may  be  assumed  to  have 
some  fair  amount  of  knowledge  of  the  details  of  their 
business.  Their  opinions  will  carry  as  much  weight 
with  common  sense  as  the  theories  of  the  reformers 
whose  stockings  are  ample  for  all  their  financial  hold- 
ings, and  who  wonder  why  they  never  happen  to 
see  any  four-dollar  bills. 

Banking  is  not  essentially  different  from  other 
branches  of  business.  Bankers  are  dominated  by  the 
same  greed  for  gain  or  desire  for  profit,  and  work 
for  the  profit  in  the  same  way  by  striving  to  give 
better  service.  There  is  no  law  possible  that  could 

(189) 


190  THE  GOSPEL  OF  GREED 

compel  people  to  patronize  banks  either  as  deposit- 
ors or  borrowers,  any  more  than  there  could  be  to 
force  people  to  ride  on  railroads  or  buy  particular 
brands  of  merchandise.  The  bankers  who  have  brains 
enough  to  offer  the  best  service,  with  the  most  assured 
security  for  deposits  or  liberality  for  loans,  will  pros- 
per and  control  the  largest  accumulations.  Those  lack- 
ing in  this  business  sense  will  fail.  Trickery  or  dis- 
honesty will  bring  the  inevitable  punishment  in  the 
failures,  whether  the  concerns  are  large  or  small.  The 
fact  that  a  bank  is  prosperous  and  growing  is  the 
best  evidence  that  it  is  giving  good  service,  and  it 
maye  be  noted  that  there  has  been  a  remarkable 
improvement  in  banking  service  corresponding  fairly 
with  the  progress  in  other  lines. 

Banks  and  railroads  are  the  most  important  sec- 
ondary factors  in  the  work  of  wealth  production  for 
the  benefit  of  the  people,  and  they  are  accordingly 
the  shinging  marks  for  the  business  destroyers.  Every 
man  who  has  dealings  with  banks  knows  that  they  are 
as  anxious  to  please  and  increase  their  business  and 
profits  as  are  intelligent  business  men  in  other  lines, 
while  the  criticisms  are  mostly  in  reference  to  the 
over  caution  for  safeguarding  the  funds  in  their  con- 
trol. When  the  number  of  banking  institutions  in 
the  country  and  the  world  is  considered,  with  the 
enormous  totals  of  money  they  handle,  the  dishonesty 
or  shortcomings  of  the  few,  which  are  so  eagerly  bla- 
zoned forth  as  big  sensations,  are  astonishly  insigni- 
ficant as  compared  with  the  high  standing  maintained 
for  the  whole. 

With  the  sensational,  anarchist-making  journals, 


BANKS  AND  BANKING  191 

however,  instances  of  mismanagement  for  half  a  dozen 
banks  are  enough  to  condemn  the  whole  ten  thou- 
sand or  more  of  the  others.  The  same  idealists  who 
tremble  for  the  liberties  of  the  people  from  the  for- 
tunes in  merchandizing  and  railroading,  have  an  extra 
tremulo  movement  when  the  big  banking  totals  are 
mentioned.  Realizing  their  own  limitations,  the  trem- 
blers are  sure  that  no  other  human  beings  could  with- 
stand the  temptations  to  exercise  the  power  for  op- 
pression which  the  control  of  such  vast  sums  would 
give.  They  fairly  shriek  at  the  horrors  which  they 
foresee  from  the  crushing  of  the  liberties  by  the  money 
kings,  the  money  devil,  the  predatory  wealth  or  the 
other  familiar,  polite  terms  used. 

The  province  of  government  in  the  matter  of  banks 
is  to  make  all  needful  regulations  for  security  of  de- 
posits and  note  issues,  and  also  to  provide  for  rigor- 
ous punishments  for  any  betrayals  of  trust.  There 
should  also  be  measures  for  uniformity  in  the  currency 
systems.  It  would  be  an  advantage  to  have  a  cen- 
tralized system  of  note  issues  with  no  more  variation 
in  the  forms  of  the  notes  than  there  is  in  the  coin 
they  call  for.  The  details  of  proposed  currency  meas- 
ures or  other  legislation  are  of  less  importance  pro- 
vided that  they  are  fairly  discussed  on  their  merits 
and  in  their  proper  relations  to  the  vast  interests  in- 
volved. 

Banks  could  not  exist  without  the  absolute  con- 
fidence of  the  business  interests  they  serve.  There 
is  less  reason  for  assuming  that  bankers  would  favor 
measures  injurious  to  such  interests  than  there  would 
for  believing  that  ordinary  merchants  would  hire 


192  THE  GOSPEL  OF  GREED 

bands  of  assassins  to  rob  and  murder  all  customers 
entering  their  doors.  Commercialism  looks  for  future 
gains,  as  well  as  present  profits,  which  may  be  a  new 
idea  for  some  of  the  professional  class  of  critics  whose 
policy  is  to  make  the  most  of  present  opportunities. 

In  defiance  of  all  reason  and  common  sense,  the 
wealth  accumulated  in  the  banks,  which  is  the  evi- 
dence of  the  best  service  for  the  industires  and  the 
people,  is  taken  by  the  strangely  perverted  notions  of 
the  reformers  as  proof  of  criminal  robbery,  and  there 
is  the  wild  howl  for  destruction.  The  mob  are  ready 
to  join  in  the  cry  of  death  to  the  banks,  and  the  para- 
sitic politicians  are,  as  usual,  posing  as  champions  for 
the  people.  So  it  is  almost  impossible  to  get  any 
simple  measure  of  legislation  for  regulations  or  cur- 
rency systems  if  it  is  suspected  that  the  measure  is 
favored  as  an  improvement  by  the  bankers.  The  real 
spirit  of  commercialism  and  its  working  for  results 
in  better  service  for  more  profits  is  something  entirely 
beyond  the  comprehension  of  the  green-eyed  envy  of 
the  bogus  cultured  idealists  or  the  anarchy  that  is 
so  eager  to  destroy  all  in  a  common  ruin. 

As  for  the  inheritance  taxes  or  the  idea  that  for- 
tunes should  be  distributed  or  confiscated  at  death, — 
this  is  only  another  way  of  smashing  the  spirit  of 
commercialism  that  gives  all  there  is  of  progress  for 
humanity.  If  the  reward  for  success  is  to  be  taken 
away  from  the  surviving  family,  there  will  be  less 
inducement  for  striving  and  less  benefit  for  the  pub- 
lic. A  successful  establishment  is  successful  only  as 
it  gives  the  service,  and  if  it  is  closed  up  by  confisca- 
tion where  will  be  the  gain  for  the  public  as  buyers 


BANKS  AND  BANKING  193 

or  for  the  employes  as  wealth  producers  and  wage 
earners?  All  these  kinds  of  crazy  attacks  on  wealth 
in  the  form  of  profits  must  work  in  the  same  way  in 
destroying  the  larger  total  of  production  from  which 
the  profits  come  and  ot  which  they  measure  the  benefit. 

Why  in  heaven's  name  and  the  name  of  suffering 
humanity  do  not  some  of  the  wise  reformers  and  critics 
of  commercialism  get  into  some  kind  of  business  and 
show  how  it  should  be  done?  The  reformer  who  can 
pay  four  to  eight  times  the  wages  and  give  the  pro- 
duct or  the  service  at  one-fourth  to  one-eighth  of  the 
cost,  or  who  can  pay  the  single  tax  full  rental  values 
on  land  and  let  the  tenants  have  it  free;  could  kill 
off  all  the  trusts  on  earth  in  six  months  and  own  all 
the  land  on  earth.  Why  worry  about  laws  or  law- 
making  when  the  whole  brood  of  capitalistic  robbers 
could  be  wiped  out  at  one  stroke,  and  the  people 
exalted  to  the  highest  happiness?  Why  waste  oceans 
of  talk  and  tons  of  good  white  paper  in  arguing  and 
denouncing  when  the  remedy  is  so  easy,  and  any 
amount  of  capitalistic  greed  is  ready  and  anxious  to 
give  a  helping  hand  for  such  results? 

If  these  intellectuals  feel  that  they  must  exploit 
themselves  in  some  way  as  superior  to  the  money- 
getting  plodders  of  commercialism,  why  not  take  up 
some  of  the  researches  into  the  unknown  and  unknow- 
able in  the  psychic  or  psychological  realms  where 
charming  fancies  do  not  collide  with  rude  facts? 
There  are  so  many  millions  of  people  in  the  world 
who  may  be  lacking  in  higher  soul  culture  but  who 
have  physical  bodies  with  physical  wants  to  be  sat- 
isfied. Commercialism  has  been  doing  a  magnificent 


194  THE  GOSPEL  OF  GREED 

work  for  these  millions  of  human  beings  in  a  practical 
way,  and  there  is  the  constant  struggle  with  all  the 
impelling  force  of  greed  for  gain  to  do  more.  Com- 
mercialism will  continue  to  support,  honor  and  re- 
ward the  work  of  the  intellectuals,  so  why  should 
the  latter  be  so  fanatically  blind  to  the  facts  and 
conditions,  and  so  savagely  vindictive  in  their  attacks 
on  the  spirit  of  commercialism  and  the  management 
of  business  affairs  which  they  know  nothing  about? 


CHAPTER  XXI. 

THE  GREED  OF  COMMERCIALISM. 

How  Far  Should  It  Be  Honored  or  Condemned — Mistakes 
of  Moralists — Influence  of  Commercialism  for  Civiliza- 
tion— Education  and  Its  Ideals  of  the  Past — The  Makers 
of  History  and  the  Agents  of  Progress. 

Why  should  any  one  seek  to  glorify  greed?  Why 
not  encourage  aspirations  for  the  higher  life  that  would 
improve  human  conditions  by  gradually  suppressing 
the  baser  passions?  Why  not  preach  the  grander 
sentiments  of  philanthrophy  or  striving  for  the  com- 
mon good?  Any  excuse  or  argument  favoring  greed 
must  have  a  lowering,  if  not  a  debasing  effect.  Greed 
is  certainly  responsible  for  an  unlimited  train  of  evils. 
To  exalt  it  as  the  source  of  all  benefits  must  encourage 
its  worst  features  for  evil.  And  so  on  for  several 
chapters  of  sermonizing. 

But  why  should  greed  be  thus  singled  out  for 
special  condemnation?  Why  not  use  the  same  logic 
for  other  things.  There  is  feeding  humanity,  for  ex- 
ample, and  think  of  the  terrible  evils  and  suffering  from 
intemperance  and  gluttony.  Are  not  these  horrible 
to  contemplate.  Then,  why  not,  with  the  same  higher- 
life  aspirations,  argue  against  feeding  in  general,  and 
demand  a  suppression  of  appetite  with  a  view  of 
getting  rid  of  the  meaner  forms  of  gluttony.  Is  it 
advisable  to  give  some  attention  to  the  wherewithal 
for  feeding  and  how  it  shall  be  fed,  or  must  we  destroy 
cook  books  and  essays  on  polite  table  manners,  and 

(195) 


V 


196  THE  GOSPEL  OF  GREED 

simply  denounce  appetite  for  food  as  a  base  passion, 
because  it  so  often  results  in  gluttony  and  drunkenness? 

If  we  could  re-create  the  world  some  of  us  could  no 
doubt  suggest  many  improvements,  but  the  human 
animal  is  here  in  possession,  and  must  work  out  his 
own  destiny  whatever  it  may  be.  The  appetite  for 
food  is  inherent  in  his  nature,  while  with  it  and  in- 
separable from  it  is  the  appetite  or  desire  for  other 
comforts  that  are  shown  to  him.  To  suppress  this 
would  be  to  exterminate  the  race.  The  very  best  that 
can  ever  be  hoped  for  by  the  higher-life  aspirations  is 
that  these  appetites  or  desires  may  be  controlled  by 
a  due  regard  for  the  rights  of  others  who  have  the  same 
desires. 

No  one  would  praise  gluttony,  and  yet  the  glutton 
may  be  a  help  to  others.  An  aesthetic  or  soulful 
savage,  for  example,  with  appetite  controlled,  would 
kill  less  game,  while  the  glutton  with  his  greedy  desire 
would  kill  more.  But  there  are  always  the  helpless 
dependents  who  cannot  kill  for  themselves,  but  who 
must  be  fed.  Which  is  the  practical  benefactor,  the 
glutton  who  gorges  himself  but  leaves  the  excess  for 
the  others,  or  the  aesthetic  one  who  provides  less  in 
accordance  with  his  limited  desires,  and  leaves  nothing 
for  the  dependents? 

The  greed  of  commercialism  wants  wealth  with  all 
the  comforts,  luxuries  and  power  it  can  procure. 
Some  are  veritable  gluttons  in  their  desires,  and  as 
the  moralists  say,  they  sacrifice  all  in  the  mad  race 
for  wealth.  If  they  succeed  they  may  gorge  them- 
selves with  the  luxuries,  but  they  cannot  consume  all 
the  good  things.  They  must  have  associates  for  their 


THE  GREED  OF  COMMERCIALISM  197 

plans,  and  at  every  step  there  is  the  labor  to  be  em- 
ployed and  paid  for,  so  that  for  every  commercial 
glutton  there  is  an  army  of  dependents  who  get  a  share 
of  the  results. 

The  church  and  the  moralists  generally  condemn 
all  this  as  a  manifestation  of  greed,  and  say  that  it  is 
better  to  be  satisfied  with  less.  The  human  animal, 
who  reasons  in  his  own  crude  way,  notices  that  the 
moralist  teachers  are  usually  well  fed  and  fairly  com- 
fortable, and  so  he  has  his  doubts.  He  utterly  fails 
to  understand  why,  when  the  contest  is  open  for  all,  he 
should  not  strive  to  the  best  of  his  ability  for  more 
of  the  rewards  in  the  soul-destroying  wealth. 

In  this  view  the  moralist  teachers  are  undoubtedly 
wrong.  By  attacking  too  much  they  lose  their  in- 
fluence for  good.  Religion,  morality,  law  and  order 
and  all  the  social  forces  have  work  enough  in  controlling 
the  greed  that  is  reckless  of  the  rights  of  others,  or 
that  is  ready  to  combine  with  jealous  envy  for  de- 
struction. If  they  would  concentrate  on  this  feature 
the  influence  would  be  for  good,  because  the  weaker 
would  be  protected,  and  the  opportunities  held  open 
for  all.  The  leaders  who  have  ability  enough  to  lead 
and  get  the  results  should  be  honored  instead  of  con- 
demned. The  anathema  should  be  reserved  for  those 
whose  methods  are  clearly  of  the  plundering  order  and 
with  no  evidence  of  a  desire  to  benefit. 

The  socialists  from  on^ide  and  the  moralist  teachers 
from  the  other,  unite  in  condemning  the  greedy  spirit 
of  commercialism  which  labors  without  ceasing  for 
the  better  results.  Both  are  willing  enough  to  enjoy 
the  benefits,  but  they  say  that  the  men  who  bring  the 


198  THE  GOSPEL  OF  GREED 

results  should  take  less  in  a  material  way  and  be 
satisfied  with  honors  for  a  reward.  Commercialism 
insists  in  a  practical  view  that  nothing  can  come  from 
human  endeavor  without  a  suitable  incentive  for 
action,  and  would  like  to  know  something  definite  as 
to  the  honors  promised.  The  result  generally  is  in 
accordance  with  the  Irish  soldier's  view  when  he  ex- 
claimed: "What's  the  good  of  glory  to  a  man  when 
his  wife's  a  widow?" 

It  has  been  cynically  said  that  Christianity  goes 
to  the  heathen  with  a  Bible  at  the  end  of  a  bayonet.  It 
is  also  said  that  the  missionary  with  his  Bible  and  the 
trader  with  his  rum  appear  together  landing  from  the 
same  ship.  There  is  a  large  element  of  truth  in  both 
sayings.  The  bayonet  teaches  regard  for  the  rights 
of  others,  and  the  rum  inspires  the  commercial  in- 
stinct for  the  creation  of  wealth  from  the  natural 
resources,  by  the  labor  of  gathering,  to  exchange  for 
the  rum.  The  savage  is  of  less  good  to  humanity  as 
a  whole  than  the  forest  in  which  he  hides,  but  the 
spirit  of  commercialism,  even  if  it  happens  to  be  rum, 
makes  him  a  wealth  producer.  He  at  once  becomes 
an  integral  part  of  the  whole,  doing  his  share,  small 
as  it  is,  for  the  common  good.  The  missionary  pro- 
tests against  the  rum  and  aims  to  save  the  souls. 
Commercialism  says  that  the  missionary's  efforts  will 
be  wasted  and  he  will  go  to  make  a  cannibal  feed  unless 
the  ideas  of  authority  and  greed  for  gain  are  inculcated. 
In  the  main  the  cynical  commercial  view  is  right, 
though  there  are  occasional  examples  of  missionary 
success  which  might  argue  to  the  contrary. 

Nature,  or  the  Almighty  Power,  supplied  the  earth 


THE  GREED  OF  COMMERCIALISM  199 

with  the  materials  which  man  must  have  to  use  for 
his  comfort  and  gratification.  If  certain  materials 
are  to  be  found  in  certain  places,  and  these  materials 
are  desirable  for  the  common  good,  it  is  manifestly 
an  injury  to  the  many  millions  to  be  prevented  from 
obtaining  the  same  by  the  savagery  of  a  few  hundreds 
occupying  such  places.  The  natural  order  would 
require  that  the  savages  be  controlled,  displaced  or 
exterminated,  if  need  be,  for  the  common  good.  This 
is  a  cold-blooded,  heartless  view  as  compared  with  the 
missionary  zeal,  but  is  it  not  more  reasonable,  and 
more  in  accordance  with  all  that  we  know  of  the  Divine 
order? 

Commercialism  braves  all  the  dangers  of  land  and 
sea  in  search  of  products  for  the  gratification  of  others, 
and  expects  profits  from  the  trading  if  the  dangers  are 
overcome.  All  honor  to  the  missionary  and  his  self- 
sacrificing  zeal,  but  he  must  be  carried  to  his  work 
by  the  ship  or  the  conveyance  that  commercialism 
furnishes  for  the  sole  purpose  of  gain.  No  matter 
what  the  point  of  view,  there  is  the  overwhelming 
evidence  of  the  benefits  of  commercialism,  and  the 
helpless  dependency  of  all  the  so-called  higher-life 
ideals,  whether  classed  as  educational  or  religious. 

Why,  then,  should  there  be  the  malicious  attacks  on 
commercialism?  The  entire  literary  cult  who  pose  as 
superior  beings  and  sneer  at  the  struggle  for  wealth, 
owe  their  education  to  commercialism,  and  must 
depend  on  commercialism  to  buy  their  literary  prod- 
ucts. With  a  few  notable  exceptions,  the  novel- 
writing  non-producers  invariably  picture  the  successful 
business  man  or  millionaire  as  a  disgusting  hog  in  all- 


200  THE  GOSPEL  OF  GREED 

his  actions  and  ideas.  The  heroes  of  fiction  scorn 
wealth  with  a  blighting  scorn,  but  all  the  same  they 
must  live,  and  they  settle  down  "  in  happiness  forever 
after  "  with  wealth  that  some  one  else  has  provided. 

From  this  class  of  bigots  are  recruited  the  socialistic 
reformers  who  are  so  sure  that  profits  must  be  robbery, 
because  they  could  never  get  any  for  themselves,  and 
who  demand  a  smashing  and  dividing  up  for  the  pre- 
tended benefit  of  the  people  of  whom  they  are  the  im- 
portant part.  They  know  absolutely  nothing  of  the 
simplest  business  details,  but  they  assume  to  teach 
with  an  infallible,  inspired  authority  for  all  industrial 
movements.  Some  of  the  malicious  and  villifying 
attacks  from  this  class  on  important  industries  show 
a  reckless  greed  for  the  pittance  of  profit  from  such 
sensationalism  meaner  and  lower  than  anything  to 
be  found  in  the  cheapest  kind  of  commercialism. 

Commercialism  is  naturally  tolerant  and  broad- 
minded.  In  its  hard  struggle  with  competition  it 
learns  respect  for  the  competitors,  although  in  the 
smaller  operations  the  envious  jealousy  is  likely  to 
crop  out.  The  commercial  spirit  is  constructive  for 
more  wealth  or  more  benefit,  and  does  not  seek  to 
murder  and  destroy.  It  was  not  the  commercialism 
of  Spain  that  expelled  the  Moors  with  their  splendid 
industrial  development,  and  it  was  not  commercialism 
that  maintained  the  Inquisition  with  all  its  horrors. 
The  higher  life  or  higher  culture  of  the  times  was  no 
less  contemptuous  in  repressing  commercialism,  and 
at  the  same  time  continuing  the  religious  wars  and 
persecutions  with  all  the  savage  ferocity  of  the  dark 
ages.  Commercialism  always  worked  for  peace  and 


THE  GREED  OF  COMMERCIALISM  201 

development.  Commercialism  may  have  enough  to 
answer  for  in  its  defects,  but  it  can  well  challenge 
comparisons  of  the  results  with  anything  that  can 
be  claimed  for  the  higher-life  bigotry.  Then  as  to 
real  practical  benefits,  take  all  that  was  ever  done  by 
the  superior  educated  classes  and  how  pitifully  ridicu- 
lous is  the  showing  as  compared  to  the  one  single 
factor  of  the  development  of  steam  power. 

Education  at  its  best  can  be  nothing  more  than 
imparting  a  knowledge  of  principles  that  other  in- 
dividuals had  previously  discovered  for  themselves, 
and  of  the  events  chronicled  as  history  from  the  actions 
of  individuals  whose  work  gave  them  the  rank  of 
distinctive  heroes.  This  with  some  linguistic  attain- 
ments makes  up  the  sum  of  education,  and  there  is 
no  possible  dispute  about  the  value  of  the  same. 

No  one  appreciates  higher  education  more  than 
the  intelligent  business  man  who  had  no  support  for 
that  purpose  from  commercialism  in  his  younger 
days.  No  matter  how  great  his  success  otherwise, 
it  is  the  one  point  on  which  he  is  naturally  sensitive. 
But  while  others  were  studing  books  concerning  what 
rude  and  uncouth  heroes  had  done  in  former  days,  he 
was  making  history  as  the  heroic  worker  who  solved 
problems  that  had  long  baffled  others  and  won  his 
place  as  a  leader,  accumulating  his  millions.  The 
cheap  dilettante  novelist,  from  his  perch,  condemns 
such  a  man  as  lacking  in  refinement  and  having  coarse 
ideals. 

The  military  leader,  in  a  brief  campaign  with  every- 
thing supplied  for  his  use,  wins  important  victories 
and  is  loaded  with  honors,  usually  in  proportion  to 


202 


THE  GOSPEL  OF  GREED 


the  destruction  of  life  and  property  through  his  oper- 
ations. The  commercial  leader  with  nothing  supplied 
builds  up  his  industry  step  by  step,  plans  continuous 
campaigns  with  attack  and  defense,  arranges  and  dis- 
ciplines his  forces,  decides  action  or  critical  points, 
and  fights  through  it  all  with  more  signal  ability, 
energy  and  genius  than  is  shown  by  most  of  the  re- 
nowned military  leaders  of  history.  When  he  has 
accumulated  a  fortune  and  given  a  corresponding 
benefit  to  the  community,  there  are  no  honors,  but 
the  fortune  is  taken  as  evidence  of  predatory  methods 
and  he  is  barred  from  association  with  the  elect. 

In  all  movements  for  progress  in  human  affairs  the 
\  leaders  must  be  men  who  can  think  and  act  for  them- 
selves, without  reference  to  history  or  traditions. 
The  typical  scholar,  on  the  contrary,  is  taught  rever- 
ence for  such  heroes  of  the  past,  but  is  horrified  at 
proposed  changes  for  the  present,  so  that  the  new  is 
always  annoying.  History  as  it  is  taught  is  a  record 
of  the  operations  of  the  military  destroyers  and  plunder- 
ers, with  occasional  contemptuous  references  to  the 
terrified  peasants  and  tradesmen  in  abject  submission 
to  the  conquerors.  So  the  scholar  is  slow  to  believe 
that  there  can  be  anything  of  good  in  commercialism. 
But  through  the  long  centuries  of  despotic  control 
the  producers,  in  the  peasants  and  tradesmen,  were 
learning  that  they  were  supporting  and  paying  for  all 
the  glory  of  the  military  heroes,  and  slowly  but  surely 
they  forced  a  recognition  of  their  power.  When  com- 
mercialism was  finally  emancipated  from  the  despotic 
control  by  giving  freedom  for  corporations  and  associ- 
ated effort,  there  was  an  opening  for  the  men  who 


THE  GREED  OF  COMMERCIALISM  203 

could  make  history  as  well  as  for  the  educated  classes 
who  studied  history.  The  remarkable  results  are 
seen  on  every  hand  in  the  great  engineering  works, 
the  grand  building  structures,  the  growth  of  cities 
with  all  the  results  of  the  developments  of  the  past 
hundred  years.  The  scholar  is  awed  by  what  he 
reads  of  the  conquests  of  an  Alexander  or  a  Caesar 
(who  were  not  the  scholars  of  their  day), but  he  ac- 
cepts modern  conditions  as  a  matter  of  course,  and 
complains  of  defects,  while  giving  no  thought  whatever 
to  the  brain  power,  the  daring  courage  or  the  genius 
that  worked  out  the  results,  for  benefit,  not  destruc- 
tion, in  all  the  different  lines.  A  few  who  brought  out 
great  inventions  are  duly  recognized  and  commended, 
but  the  thousands  of  others  who  are  adding  improve- 
ments in  a  smaller  way,  but  none  the  less  valuable 
for  the  general  progress,  pass  unnoticed  in  the  ranks 
of  commercialism  greedy  for  gain. 

To  assume  that  the  intelligence,  the  honor  or  the 
patriotic  spirit  of  the  men  who  accomplish  such  wonders 
are  in  any  way  inferior  to  anything  in  history,  or  to 
assume  that  the  educated  readers  of  history  are  neces- 
sarily superior  to  the  men  who  have  made  and  are 
making  new  records,  is  about  as  absurd  a  proposition 
as  was  ever  presented  to  common  sense. 

Commercialism  does  not  antagonize  religion  or 
religious  teaching.  There  can  be  no  progress  without 
ideals  to  lead,  and  the  Divine  inspiration  in  some  form 
comes  to  man  to  give  the  higher  and  better  ideals  to 
which  he  may  aspire.  Through  the  dark  ages  when 
civilization  was  only  glimmering  in  Europe,  the  church 
and  the  clergy  did  wonderful  work  in  teaching  and 


204  THE  GOSPEL  OF  GREED 

taming  the  savage  hords.  They  preserved  the  ac- 
quired knowledge  from  former  civilizations  in  literature 
and  art,  but  more  important  than  all  was  the  work  for 
commercialism  in  promoting  industries  for  improving 
the  material  conditions  of  the  people.  The  centers  of 
learning  were  also  the  centers  of  industry  and  com- 
merce. 

Commercialism  and  religion  work  together  for 
the  common  good,  and  in  its  larger  freedom  com- 
mercialism honors  and  generously  supports  the  moral 
teachers  and  the  church  establishments.  The  smaller 
minds  in  religion  now  affect  to  sneer  at  commercialism, 
and  some  smaller  minds  on  the  other  side  have  little 
regard  for  religious  teaching.  It  is  against  these 
smaller  minds  that  criticism  or  condemnation  is  di- 
rected for  they  are  clearly  obstacles  to  the  real  progress 
for  all. 


CHAPTER  XXII. 

REFORMS  IN  GOVERNMENT. 

Evils  Charged  to  Commercialism  and  Weakness  of  Educated 
Classes — How  the  Ability  of  Millionaires  Could  be  Util- 
ized as  Officials — The  Socialist  Alternative. 

As  a  general  rule,  for  business  or  any  social  ques- 
tion, it  is  for  the  best  interests  of  all  that  the  best 
intelligence  should  control.  So  the  world  has  looked 
to  the  educated  classes  for  leadership,  and  in  spite  of 
defects,  there  has  been  a  vas.t  benefit  for  the  whole. 
Despotism  aimed  to  provide  the  best  education  for 
the  ruling  classes,  and  when  officials  are  chosen  by 
the  people  preference  is  usually  given  to  those  whose 
education  promises  best  results. 

Of  course  there  has  been  progress  in  education, 
which  is  no  longer  limited  to  the  ruling  classes  by 
hereditary  right,  and  there  is  the  desire  for  investi- 
gation for  more  knowledge.  Jhe  best  educators  recog- 
nize the  progress  of  events  that  make  current  history, 
and  give  due  credit  to  the  work  of  commercialism. 
But  the  weaker  minds  feel  that  with  the  great  progress 
of  commercialism  they  are  losing  their  former  author- 
ity, and  are  more  or  less  influenced  by  jealousy,  so 
that  they  are  ready  to  make  attacks  and  to  discredit 
the  ability  and  the  achievements  of  the  modern  indus- 
trial leaders.  The  professional  classes  generally  are 
in  much  the  same  position.  By  reason  of  their  edu- 
cation they  could  maintain  a  superiority  over  the 
ordinary  tradesman,  but  they  are  being  forced  to 

(205) 


206  THE  GOSPEL  OF  GREED 

admit  that  superiority  in  their  particular  lines  does 
not  mean  that  other  ability  in  other  lines  may  not 
be  equally  as  valuable  and  worthy  of  due  recognition 
both  for  financial  results  and  social  standing. 

Now  there  is  a  feeling  of  alarm  on  the  part  of  the 
non-wealth-producing,  educated  classes,  formerly  in 
acknowledged  leadership,  because  of  the  growing  power 
and  importance  of  the  commercial  and  industrial 
forces.  There  is  a  manifest  disposition  on  the  part 
of  the  politicians  and  non-producing  professional 
classes  to  suppress  commercialism  with  some  of  the 
old-time  measures  of  death  and  confiscation.  There 
is  even  the  leaning  to  the  socialistic  theories  of  a 
return  to  the  old  ideas  of  absolute  despotism  to  keep 
these  upstarts  in  their  proper  places  as  the  world's 
working  cattle.  It  is  intolerable  that  these  men  who 
have  created  vast  wealth  should  be  permitted  to 
flaunt  their  gains  in  the  faces  of  the  non-producers, 
and  there  is  a  savage  denunciation  of  the  sordid  greed 
of  the  commercial  leaders  which  buys  public  officials 
and  corrupts  legislative  bodies  for  its  own  base 
ends.  So  the  greed  of  commercialism  is  held  up  as 
the  agent  of  destruction  for  humanity,  and  millions 
of  the  unthinking  rally,  as  they  always  do,  when  the 
appeal  is  made  to  their  own  greed  or  envy. 

But  who  are  the  ones  who  sold  themselves,  and 
whine  because  they  were  tempted  beyond  their  moral 
powers  of  resistance?  They  were  certainly  not  com- 
mercial leaders,  because  the  parable  problem  of  the 
rich  man  entering  the  kingdom  of  Heaven  would  be 
child's  play  compared  to  the  possibility  of  electing 
a  successful  business  man  or  millionaire  to  any  public 


REFORMS  IN  GOVERNMENT  207 

office,  national,  state  or  municipal.  Were  they  not 
in  every  instance  the  superior  non-producing  classes 
who  joined  in  condemning  the  wicked  greed  of  the 
capitalistic  robbers?  This  is  not  excusing  or  defend- 
ing any  specific  wrong-doing  by  capitalists,  but  simply 
holding  to  the  general  principles. 

Corruption  is  charged  in  connection  with  granting 
franchises  for  public  transportation.  But  why  do  the 
capitalistic  robbers  want  such  franchises?  Is  it  not 
because  of  their  belief  that  the  lines  will  be  of  such 
service  to  the  public  that  the  profits  from  the  service 
will  bring  fortunes?  Which  is  the  important  feature, 
the  service  or  the  profits?  Then  legislative  bodies 
make  certain  demands  for  payment  before  they  will 
grant  the  franchise.  Leaving  out  the  question  as  to 
whether  the  municipality  or  the  state  should  get  more 
or  less,  or  whether  the  capitalistic  profits  should  be 
limited  more  or  less,  there  is  the  vastly  more  important 
feature  as  to  whether  or  not  the  public  should  have 
the  service  they  are  anxious  to  use  and  pay  for? 

Capitalists  foresee  the  benefits  to  the  public  or  they 
would  not  risk  the  investment  for  the  service.  Who 
is  the  public  benefactor  or  the  public  enemy,  the 
capitalist  who  pays  the  blackmail  demanded,  or  the 
blackmailer  who  would  prevent  the  opening  of  the 
line  for  the  public  benefit? 

The  crowning  absurdity  of  the  present  situation 
with  the  grand  onslaught  against  the  evils  of  the 
corrupting  greed  of  commercialism,  however,  is  the 
pretense  that  in  some  way  it  is  an  entirely  new  devel- 
opment in  human  affairs.  The  educated  classes  are 
supposed  to  know  something  of  history,  and  of  the 


208  THE  GOSPEL  OF  GREED 

doings  of  despotic  governments  when  commercialism 
was  not  given  much  of  a  chance,  and  the  superior 
beings  controlled  all.  Do  the  records  show  anything 
of  corruption  or  not?  Is  there  anything  in  modern 
times  to  compare  with  the  chartered  companies,  or 
the  royal  monopolies  that  were  authorized  to  plunder 
the  producers  without  limit,  as  long  as  they  divided 
with  the  rulers?  The  bigoted  policy  of  such  concerns, 
moreover,  suppressed  all  improvements  that  would 
give  more  wealth  creation  and  more  benefit,  but  was 
content  to  confiscate  what  others  had  produced. 

Everyone  with  intelligence  enough  to  read  history 
and  honestly  note  current  changes  must  know  that 
although  commercial  leaders  are  practically  barred 
out,  yet  the  influence  of  commercialism  in  showing 
better  methods  and  better  systems,  with  reduced 
expenses  and  better  accounting,  has  forced  changes 
for  the  better  in  all  departments  of  the  public  service. 
In  the  national  and  all  the  state  legislatures,  as  well 
as  the  municipalities,  positive  charges  of  corruption 
are  exceptional  enough  to  be  treated  as  newspaper 
sensations,  while  years  ago  such  charges  were  too 
common  for  special  notice. 

If  we  assume  that  government  machinery  is  de- 
fective to  any  extent  that  may  be  charged,  what 
would  common  sense  suggest  as  the  remedy? 

At  present  all  government  is  in  the  hands,  prac- 
tically, of  the  non-producing,  professional,  educated 
classes  of  various  kinds  and  conditions.  They  are 
accordingly  reckless  in  the  matter  of  expenses  or 
cost.  Then  these  classes  have  developed  little  of 
progress  in  their  own  special  lines  for  the  past  hun- 


REFORMS  IN  GOVERNMENT  209 

dred  years,  excepting  possibly  the  notable  discoveries 
in  medical  science.  As  rulers  they  are  conceded  to 
be  woefully  lacking. 

Now  what  of  commercialism  and  the  greed  of  the 
capitalistic  robbers  representing  all  the  wealth  pro- 
duction and  the  great  working  force  of  the  people? 
They  have  shown  results  in  their  lines  that  are  amaz- 
ing as  compared  with  one  hundred  years  ago.  They 
have  given  wonderful  results  in  organizing  and  co- 
operative effort,  all  the  way  from  factories  to  great 
establishments  for  manufacturing  .and  merchandizing, 
then  the  wonderful  details  systematized  in  the  transpor- 
tation lines,  and,  finally,  the  larger  corporate  organ- 
izations of  the  trust  nature,  embracing  the  larger 
portion  of  some  of  the  leading  industries.  Whether 
they  rob  or  not,  and  whether  the  fortunes  are  too  big 
or  not,  the  leaders  in  these  movements  must  be  credited 
with  an  executive  ability  and  a  practical  judgment  for 
control,  as  well  as  an  intelligent  direction  for  getting 
results,  away  beyond  anything  ever  before  known  or 
thought  possible.  Would  such  men  be  competent  for 
executive  management  of  ordinary  city,  state  or 
national  affairs,  or  would  their  judgment  be  worth 
considering  for  legislation? 

The  non-producing  professionals,  from  their  su- 
perior, higher-life  point  of  view,  say  that  although 
these  men  have  shown  a  kind  of  ability,  yet  they  are 
still  nothing  but  traders,  having  no  higher  ideals  of 
philanthropy  or  soul  culture.  They  are  also  wicked 
robbers  whose  whole  aim  in  life  is  extortion  with  ruin 
and  slavery  for  the  people. 

Of  course,  with  a  nation  of  slaves  there  would  not 


210  THE  GOSPEL  OF  GREED 

be  many  big  fortunes  accumulated  from  profits  on 
the  sale  of  products,  but  let  that  pass  as  one  of  the 
higher-life-business  ideals,  and  take  another  view. 

If  the  capitalistic  robbers  now  offer  such  bribes  to 
legislators  and  officials  that  the  high-minded  souls 
cannot  resist,  why  not  try  the  old  remedy  of  setting 
a  thief  to  catch  a  thief?  Put  a  few  of  the  capitalistic 
thieves  in  official  positions  and  enjoy  the  contest  with 
the  bribing  thieves.  The  commercialist  officials  would 
at  least  know  the  value  of  the  favors  wanted,  and 
exact  a  good  price  for  the  same,  while  it  is  a  source 
of  sorrow  for  so  many  of  the  high-minded  ones  that 
they  sold  out  too  cheap.  If  there  was  no  profit  in 
bribery,  the  greed  of  commercialism  would  cease  to 
bribe.  There  is  the  complete  answer,  as  the  pro- 
fessors would  say:  Quod  erat  demonstrandum  or  " which 
was  to  be  demonstrated/' 

Is  the  world  not  old  enough  or  have  people  not 
had  experience  enough  to  realize  the  stupendous  folly 
of  the  continued  attacks  on  the  spirit  of  commercial- 
ism to  which  alone  they  owe  everything  in  life  worth 
having?  Why  combine  the  conceit  of  the  literary 
class  with  the  jealous  envy  of  the  more  ignorant  to 
condemn  and  thwart,  as  far  as  possible,  the  progress 
coming  from  the  common  sense  of  commercialism? 

Why  not  give  some  of  the  millionaires  a  chance  as 
officials?  They  cannot  well  be  much  worse  than  some 
of  the  present  poor  but  honest  (?)  incumbents,  and 
they  might  be  a  great  improvement.  Some  of  our 
cities  are  having  a  lucid  interval  in  this  particular, 
and  are  having  their  affairs  administered  by  a  system 
equivalent  to  that  of  a  capitalistic  trust  corporation. 


REFORMS  IN  GOVERNMENT  211 

We  have  had  experience  with  despotism  in  the  past, 
and  with  an  approximate  to  mob-rule  in  the  present 
in  some  localities.  Now  why  not  try  some  commer- 
cialist,  business  methods  in  a  common-sense  business 
way  to  please  the  great  majority  of  the  people? 

The  socialist  alternative  offered  is  substantially  to 
place  all  the  wealth  in  the  control  of  the  government 
officials,  and  having  all  they  could  not  well  be  bribed 
with  offers  of  more  that  did  not  exist.  This  would  be 
a  complete  logical  remedy  for  the  bribery  feature, 
sure  enough,  if  the  public  would  like  the  remedy  at 
that  price.  If  there  is  an  objection  to  the  domineer- 
ing of  the  greedy  capitalists  who  now  control  portions 
of  the  wealth,  what  could  be  expected  from  the  offi- 
cials who  would  control  it  all?  For  those  who  could 
manage  to  get  the  official  positions,  it  might  be  sat- 
isfactory enough,  but  there  must  be  limits  to  the 
number  of  office  holders,  even  with  the  enormous 
powers  of  the  socialistic  government.  The  great 
majority  or  common  workers  on  an  equality  basis 
would  have  to  take  so  much  as  was  considered  good 
for  them. 

It  is  safe  to  say  that  the  great  majority  would 
prefer  to  retain  the  present  system  even  with  some 
bribery  attachments  rather  than  risk  such  a  change. 

Ever  since  human  beings  began  to  associate  for 
co-operative  effort,  the  general  intelligence  and  com- 
mon sense  has  recognized  the  value  of  the  work  of 
the  leaders  who  proved  exceptional  ability  in  any 
particular  line.  There  are  hundreds  of  homely  pro- 
verbs concerning  the  results  from  the  eye  of  the 
master  or  his  influence  in  getting  the  results  from 


212  THE  GOSPEL  OF  GREED 

the  workers.  The  successful  men,  though  often  en- 
vied and  attacked,  have,  none  the  less,  been  honored 
for  what  they  have  accomplished.  The  men  who 
amassed  wealth  were  credited  with  ability  in  pro- 
portion, even  if  it  was  of  the  robber  variety,  and  the 
men  who  retained  wealth  were  credited  with  judg- 
ment for  avoiding  the  blunders  that  would  dissipate 
it.  In  all  communities  the  rich  men  are  appealed 
to  for  advice  on  business  matters,  and  they  are  asked 
to  take  the  lead  in  any  measures  for  the  common 
good. 

But  now  comes  the  new  propaganda,  the  higher 
idea,  and  the  new  dispensation,  which  holds  that  all 
this  is  radically  and  preposterously  wrong.  The  wealth 
creators,  it  is  now  asserted,  are  the  workers  who  obey 
the  orders,  and  not  the  leaders  who  plan  and  direct. 
A  brood  of  reformers  insist,  in  effect,  that  labor  man- 
ages itself  and  knows  best  what  to  do.  The  present 
leaders  or  directors  are  interlopers  who  interfere  and 
should  be  thrown  out.  Instead  of  success  being  ac- 
cepted as  any  evidence  of  ability,  it  is  assumed  that 
the  successful  ones  are  in  fact  the  cheapest  kind  of 
ignorant,  low-down  thieves  who  rob  labor. 

In  short,  we  are  commanded  to  believe  that  through 
all  centuries  of  progress  in  the  past  the  industrial  world 
has  been  standing  on  its  head.  There  were  great 
minds  in  the  past  who  left  enduring  records  for  the 
future  to  admire,  but  they  could  not  see  or  understand 
the  abnormal  conditions  which  are  so  clear  to  the 
X-ray  vision  of  the  modern  reformers. 

When  the  people  of  England  took  the  ruling  power 
into  their  own  hands  as  the  people  of  the  American 


REFORMS  IN  GOVERNMENT  213 

colonies  did  about  the  same  time,  commercialism  was 
the  moving  force  and  was  duly  honored  in  the  coun- 
cils. Since  then  the  British  government  has  made 
the  commercial  and  industrial  interests  paramount  in 
all  legislation,  and  the  same  was  true  in  the  United 
States.  It  is  only  within  recent  years  that  there  has 
been  developed  in  both  countries  the  pretended  fear 
of  the  power  of  commercialism.  Sensational  news- 
papers eager  to  incite  the  mob  (for  profit),  and  pro- 
fessional politicians  as  office  seekers,  who  never  en- 
gaged in  any  other  gainful  occupation,  have  joined 
in  trembling  for  the  liberties  of  the  people.  If  indus- 
tries are  attacked  with  threats  of  confiscation,  and 
delegations  come  to  make  fair-minded  protests  there 
are  shrieks  of  alarm  lest  the  professional  patriots  should 
be  tempted  to  a  point  where  they  feel  they  must  surely 
succumb. 

Then  there  is  the  awful  threat  that  commercialism 
is  aiming  to  control  politics  and  dominate  the  gov- 
ernment. Commercialism  including  industry  is  the 
bread-winner,  the  life-giver  and  the  vital  principle  of 
the  nation,  representing  all  there  is  of  wealth  produc- 
tion and  progress  for  the  benefit  of  humanity.  What 
a  disaster  it  would  be  if  parasitic  professional  office- 
holders were  dominated  or  even  replaced  by  commer- 
cial leaders  of  proved  ability.  Rather  than  such  a 
calamity,  the  politicians,  the  professional  classes  (to 
some  extent)  and  the  moralists,  who  would  suppress 
greed  for  gain,  as  well  as  the  literary  shining  lights 
will  unite  for  a  revolution.  They  will  incite  the  mob 
by  the  glittering  and  meaningless  promises  of  social- 
ism to  restore  the  despotic  idea  of  government  by  the 


214  THE  GOSPEL  OF  GREED 

sword  for  the  benefit  of  the  Lord's  annointed  aristo- 
crats and  the  suppression  of  the  upstart  individuals 
coming  from  the  ranks  of  plebeian  commercialism. 

There  is  no  way  of  estimating  the  vagaries  of  the 
human  element  or  to  what  extent  the  majority  can 
be  stampeded.  Both  the  British  and  the  American 
people,  as  well  as  other  nationalities  considered  more 
easily  excitable,  have  passed  through  trying  times, 
and  have  paid  tremendous  penalties  for  blundering 
policies  adopted.  But  through  all  there  has  been  the 
saving  element  of  common  sense  which  asserts  itself 
to  rectify  the  mistakes  and  displace  the  brilliant 
dreamers  by  the  hard-headed  plodders  who  make 
surer  if  slower  progress  in  accomplishing  positive 
results  for  the  welfare  of  the  people.  The  mob  may 
destroy,  but  re-building  and  progress  can  come  only 
from  the  best  intelligence  which  must  dominate  and 
control  for  the  common  good. 

The  last  word  of  the  socialistic  reform  idea  is  the 
high  official  demand  that  the  control  of  business  cor- 
porations must  be  placed  in  the  hands  of  the  execu- 
tive department  of  the  government.  The  judicial  and 
legislative  branches  are  condemned  off-hand  as  utterly 
incompetent  to  exercise  any  supervision  because  they 
believe,  in  their  blindness,  that  all  should  be  treated 
alike  with  an  equal  measure  of  justice  for  all.  The 
new  principle  is  promulgated  that  "the  burden  of 
proof  should  be  on  them  [the  great  and  wealthy  com- 
binations] to  show  that  they  have  a  right  to  exist," 
to  the  satisfaction  of  the  executive  authority  or  some 
of  the  officials  in  charge.  In  other  words,  the  lead- 
ers of  industrial  enterprise  and  wealth  production  who 


REFORMS  IN  GOVERMENT  215 

have  proved  their  ability  sufficiently  to  be  given  a 
larger  control  are  condemned  in  advance  as  criminals, 
but  are  to  have  the  privilege  of  being  asked  what  they 
have  to  say  for  themselves  before  sentence  is  pro- 
nounced. The  mass  of  the  people  who  buy  the  prod- 
ucts at  the  terms  offered,  and  so  make  the  wealthy 
combinations  possible,  as  well  as  the  smaller  number 
who  figure  as  stock-holding  investors,  are  silly  children 
who  must  be  restrained  and  regulated  by  the  non- 
producing,  parasitic  officials  who  will  do  all  the  guid- 
ing and  managing. 

The  old-time  despots  of  history  claimed  exactly 
the  same  superior  wisdom  by  their  Divine  Right,  and 
exercised  the  same  authority  for  regulating  business 
affairs.  But  the  worst  of  them  were  never  so  openly 
insulting  to  the  intelligence  of  their  subjects,  and 
always  made  a  pretense  at  least  of  giving  a  hearing 
and  a  fair  trial  for  any  specific  charges  presented. 
There  was  always  something  of  the  noblesse  oblige  in 
the  old-time  Lord's  anointed  despots  that  gave  a  cer- 
tain grace  to  their  plundering,  and  they  respected 
some  formalities.  The  modern  style  of  superior  would- 
be  despots  scorn  all  restraint,  and  will  be  satisfied 
with  nothing  less  than  reckless,  rampant  destruction 
for  all  that  they  see  fit  to  condemn. 

These  views  are  not  confined  to  one  set  of  politi- 
cians, and  the  war  on  industrial  leaders  is  declared 
in  a  general  way  in  the  different  party  platforms. 
Wickedness  and  depravity  are  assumed,  and  laws  are 
demanded  for  suppression.  But  as  laws  must  be  gen- 
eral in  their  terms,  no  line  can  be  drawn,  and  the 
injury  or  smashing  comes  to  the  smallest  as  well  as 


216  THE  GOSPEL  OF  GREED 

the  largest.  With  a  lofty  indifference  to  the  facts 
and  conditions  of  ordinary,  sordid  business  affairs, 
the  high-minded  rulers  formulate  the  remedies  to 
please  the  popular  clamor,  thereby  wrecking  instead 
of  promoting  the  movements  for  the  general  welfare. 

How  long  will  the  wealth  producers  and  commercial 
leaders  continue  to  contribute  for  this  kind  of  polit- 
ical leadership,  and  how  long  will  the  workers  who 
must  pay  for  it  all  continue  to  uphold  such  dema- 
gogry  and  make  it  profitable?  With  the  leaders 
smashed,  what  are  the  possibilities  for  the  rank  and 
file  of  the  producing  army? 

If  the  higher  lite  theorists,  the  socialistic  dreamers, 
and  all  the  other  reforming  faddists  are  not  satisfied 
with  the  results  that  humanity  has  developed  so  far, 
and  want  to  test  their  new  systems,  why  do  they 
not  take  themselves  to  some  of  the  beautiful  isles  of 
the  sea,  where  robbers  will  not  rob,  wealth  will  not 
annoy,  greed  be  unknown,  and  coarse  natures  will 
not  shock  cultured  serenity?  There  with  the  bright- 
est galaxy  of  intellect  presiding  over  white-souled  per- 
fection, why  sigh  for  the  joys  of  a  heavenly  hereafter? 

They  might  send  an  occasional  message  descrip- 
tive of  their  bliss,  but  there  would  be  no  serious  com- 
plaint if  they  remained: 

"The  world-forgotten 
And  by  the  world  forgot." 


CHAPTER  XXIII. 

AN  ADDENDUM. 

The  Head  Devil  of  AH  and  His  Depravity — Heroes  of  History 
and  of  Commercialism  and  Their  Achievements — Char- 
acter of  the  Opposition — Comedy  or  Tragedy. 

No  consideration  of  an  economic  question  could  be 
complete  without  some  direct  reference  to  the  head 
devil,  the  typical  arch  enemy  and  threatened  destroyer 
of  the  liberties  of  the  people,  so  fiercely  attacked  and 
denounced,  meaning,  of  course,  the  Standard  Oil 
Combination.  What  would  be  a  common-sense  view 
of  its  depravity? 

History  is  largely  a  record  of  wars  for  conquest 
with  slaughter,  devastation  and  destruction  for  the 
conquered.  Education  studies  history  and  exalts  the 
conquering  heroes  as  exemplars  of  the  highest  human 
achievement. 

Individuals  like  Rockefeller  take  up  the  inglorious 
work  of  commercialism  and  develop  inventions  from 
materials  that  were  for  the  most  part  going  to  waste, 
or  new  business  methods  which  give  the  results  in  the 
increased  wealth  production  for  the  world. 

From  an  obscure  operator  working  in  open  compe- 
tition with  hundreds  of  others  and  with  no  special 
advantages,  Rockefeller  advances  in  thirty  years  to 
the  head  of  the  great  organization  which  commands 
the  attention  of  the  world.  He  and  his  associates 
develop  new  ideas  in  transportation  by  tank  cars, 
pipe  lines  and  tank  cargo  steamers  which  are  essentially 

(217) 


218  THE  GOSPEL  OF  GREED 

inventions  for  the  creation  of  wealth.  They  also 
originate  plans  for  combination  and  co-operation  for 
better  results  in  wealth  production,  the  economic 
merits  of  which  are  so  apparent  that  the  plans  are 
adopted  by  other  industries  in  this  and  other  countries. 
The  army  of  employes  and  their  dependents  number 
more  than  the  population  of  many  quite  important 
nations.  The  value  of  the  product  exceeds  the  total 
wealth  of  many  such  nations  and  the  business  oper- 
ations cover  all  the  civilized  world  wherever  light  is 
wanted. 

Who  were  the  victims  of  this  conqueror? 

Well,  at  the  worst  that  can  be  charged  they  were 
some  dozen  competitors  who  were  pushed  aside  in 
the  early  stages  of  the  contest.  For  the  workers  as 
employes  and  the  people  of  the  world  as  consumers 
there  were  only  benefits  and  more  benefits  multiplied 
in  the  higher  wages  and  remarkable  reduction  in  cost 
of  the  products. 

Is  there  any  evidence  of  commanding  ability  or 
brilliant  genius  in  such  achievements  or  not?  What 
can  any  or  all  of  the  conquering  heroes  that  history 
glorifies  show  in  comparison  of  benefit  for  humanity? 

If  it  is  said  that  Rockefeller  in  his  business  dealings 
with  competitors  has  not  been  as  lady-like  as  he  should 
have  been  in  the  opinions  of  the  critics,  how  will  he 
compare  in  this  particular  with  the  personal  character 
and  actions  of  the  glorified  cdnquering  heroes  of 
history? 

What  is  true  of  Rockefeller  and  the  Standard  Oil 
Corporation  is  equally  true,  in  a  lesser  degree  only,  of 
the  leaders  and  combinations  in  other  industries  where 


AN  ADDENDUM  219 


conspicuous  fortunes  are  the  index  of  results  accom- 
plished for  larger  wealth  production.  How  absurd 
and  trifling  it  is  to  go  into  spasms  about  the  profits  or 
the  fortunes  while  ignoring  the  grander  values  and 
benefits  of  the  production. 

But  educated  higher-life  culture  continues  to  wor- 
ship the  conquering  heroes  of  history  with  all  their 
black  records  of  crime,  and  has  nothing  but  sneers  and 
spite  for  the  vastly  more  important  achievements  of 
the  heroes  of  commercialism  who  are  set  down  as 
mere  money  grubbing,  ignorant  and  uncultured 
traders. 

What  will  be  the  verdict  of  saner  historians  in  the 
future  ? 

The  great  fortunes  of  the  Standard  Oil  combina- 
tion and  other  industrial  concerns  are  positive  proof 
of  the  enormous  volume  of  wealth  created  and  dis- 
tributed. Any  squint-eyed  views  of  the  profits,  while 
ignoring  the  greater  value  of  the  business  itself,  are 
puerile  and  nonsensical. 

How  does  the  progress  with  the  industrial  condi- 
tions of  the  United  States  in  recent  years  compare 
with  that  of  other  nations  of  the  earth  where  there 
are  no  Rockefellers,  no  Carnegies,  no  plundering  rail- 
road magnates  and  no  other  trust  robbers? 

Why  the  flood  of  immigration  coming  here  to  be 
robbed? 

Then  note  what  can  be  done  in  the  way  of  a  change 
in  one  short  year  by  the  misdirected  zeal  of  a  reformer 
in  official  position  who  assumes  despotic  authority  for 
regulating  and  repressing  all  business  operations  that 
his  wisdom  sees  fit  to  condemn. 


220  THE  GOSPEL  OF  GREED 

And  all  the  high-minded  professional  politicians 
applaud ! 

No  one  will  charge  that  officials  or  politicians  de- 
liberately intended  to  bring  about  panic  conditions. 
They  were,  no  doubt,  influenced  by  an  earnest  desire 
to  correct  certain  evils.  But  results  follow  from  causes. 

If  the  physician  does  not  understand  the  case,  the 
patient  must  suffer  from  the  effects  of  the  wrong  medi- 
cines administered,  when  grave  complications  might 
be  avoided  by  common-sense,  home  treatment  without 
the  drastic  remedies. 

There  is  derision  for  the  jackass  that  hesitated 
between  two  bales  of  hay  until  he  starved  to  death, 
but  what  must  be  thought  of  other  jackasses  who 
affect  a  scorn  for  all  hay,  and  kick  viciously  at  the 
providers  of  the  same? 

Will  the  superior  wisdom  of  the  non-producing 
rulers  provide  employment  and  earnings  with  more 
progress  for  the  workers  when  the  present  leaders  are 
killed  off  and  the  greed  of  commercialism  is  sup- 
pressed? 

The  climbing  progress  to  better  conditions  is  slow 
and  arduous,  but  easy  and  swift  is  the  descent  to  the 
lower  levels  of  stupid  despotism  and  animal  savagery. 

Literary  soldiers  of  fortune,  ready  to  sell  their 
services  for  either  attack  or  defense,  are  specially 
venomous  and  vindictive  when  their  efforts  are  not 
appreciated.  Professional  politicians  who  must  be 
supported  as  office-holders  and  expect  perquisites,  are 
equally  venomous  when  the  temptations  are  not  forth- 
coming. These  with  others,  fanatical  believers  and 
envious  incompetents,  unite  in  trembling  for  the 


AN  ADDENDUM  221 

liberties  of  the  people  from  the  increased  flood  of 
wealth  production  that  the  capitalistic  robbers  are 
developing.  With  the  aid  of  the  mob  whose  passions 
are  being  cleverly  worked  up,  they  will  aim  to  suppress 
commercialism  or  at  least  to  scare  the  leaders  for  more 
liberal  blackmail  contributions. 

But  will  the  mob  frenzy  be  restrained? 

Will  it  be  comedy  or  tragedy? 

Is  it  to  laugh  or  to  meet  threatening  danger? 

Do  you  want  a  change? 

What  change  do  you  want? 

Will  you  join  with  the  destroyers? 

Will  you  keep  in  line  for  more  progress? 

Think  it  over  a  little. 

Prove  all  things  and 

hold  fast  to  that  which  is  good. 


OF  TMt 

UNIVERSITY 


THIS  BOOK  IS  DUE  ON  THE  LAST  DATE 
STAMPED  BELOW 

AN  INITIAL  FINE  OF  25  CENTS 

WILL  BE  ASSESSED  FOR  FAILURE  TO  RETURN 
THIS  BOOK  ON  THE  DATE  DUE.  THE  PENALTY 
WILL  INCREASE  TO  SO  CENTS  ON  THE  FOURTK 
DAY  AND  TO  $1.OO  ON  THE  SEVENTH  DAY 
OVERDUE. 


SEP   28  1933 


SEP  29  1933 


1933 


nr.c  i   ••:*»* 


JUN     0    1944 


14Mar*57CR 


D  LD 


FEB281957 


LD  21-100?n-7,'33 


06835 


190890 


